2Elements, Balances, and Rates

Let's look at the applicable elements, rates and balances for PHI.

Elements

The elements are automatically created by the main PHI component.

You need to create the element eligibility for these elements, as required. Here’s a summary of elements that are created.

Element	Classification	Details
PHI Main Processor	Information	Automatically created by the main PHI component.
PHI Employee Pre-Statutory Processor	Information	Automatically created by PHI calculation card for an approved scheme.
PHI Employee Pre-Statutory Calculator	Information	Automatically created by PHI calculation card for an approved scheme.
PHI Employee Voluntary Deduction Calculator	Information	Automatically created by PHI calculation card for an approved scheme.
PHI Employer Information Processor	Information	Automatically created by PHI calculation card
PHI Employer Information Calculator	Information	Automatically created by PHI calculation card.
PHI Approved Employee Presatutory Deductions	Prestatutory Deductions	Created by PHI calculation card. The element entries are created using the PHI component data. This is the employee deduction element for prestatutory deduction.
PHI Approved Employee Voluntary Deductions	Voluntary Deductions	Created by PHI calculation card. The element entries are created using the PHI component data. This is the employee deduction element for voluntary deductions.
PHI Approved Employer USC Information	Information	Automatically created by the fast formula during payroll process.
PHI Approved Employer Notional Pay	Taxable Benefits	Automatically created by the fast formula during payroll process for all employer contributions above 10% of earnings.
PHI Unapproved Employee Voluntary Deductions	Voluntary Deductions	Automatically created by the fast formula during payroll process for employee contributions.
PHI Unapproved Employer Notional Pay	Taxable Benefits	Automatically created by the fast formula during payroll process for employer contributions.

Here's the element subclassifications for PHI that’s used by default. You need to remove the classification if an earnings element isn’t counted for PHI earnings.

Primary Classification	Subclassification	Usage
Standard Earnings	Standard Earnings Employee Income for PHI	Earnings for PHI 10% check All elements created will be deemed as PHI earnings, by default.
Supplemental Earnings	Supplemental Earnings Employee Income for PHI	Supplemental Earnings for PHI 10% check All elements created will be deemed as PHI earnings, by default.

To set up payment elements for PHI, you need to create earnings elements for approved and unapproved schemes. Here are important points to consider.

• Create the element for the primary classification of Standard Earnings or Supplemental Earnings.
• If you’re creating the element for an approved scheme, ensure that you remove these inherited subclassifications and set the element to be processed for PRSI Class M:
  • Standard Earnings Employee Income for PHI
  • Pay for Employee PRSI
  • Pay for Employer PRSI
• If you’re creating the payment element for an approved scheme, remove these subclassifications and set the element to be processed for PRSI Class M:
  • Standard Earnings Employee Income for PHI. Use instructions from PHI scheme provider to identify the statutory liability.
  • Remove subclassification for Subject to PAYE or PRSI or USC, if required.

Note: PHI payments from approved schemes aren't subject to PSRI. PHI payments from both approved and unapproved schemes aren't considered toward earnings for PHI.

Balances

Here’s a summary of balance feeds and balances that’s used:

Balance Name	Feed
Notional Pay subject to PAYE	Approved PHI Employer contributions >10% of earnings Unapproved PHI Employer contributions
Notional Pay subject to PRSI	Approved PHI Employer contributions >10% of earnings Unapproved PHI Employer contributions
Notional Pay subject to USC	Approved PHI Employer contributions >10% of earnings Unapproved PHI Employer contributions
USC Pay	Approved PHI scheme contributions
Net Pay	Approved PHI Employee Pre-statutory deductions Approved PHI Employee Voluntary Deductions Unapproved PHI Employee Voluntary Deductions
Net	Approved PHI Employee Pre-statutory deductions Approved PHI Employee Voluntary Deductions Unapproved PHI Employee Voluntary Deductions
Gross Taxable	Approved PHI Employee Pre-statutory deductions
Notional Pay subject to PAYE	Approved PHI Employer contributions >10% of earnings Unapproved PHI Employer contributions
Notional Pay subject to PRSI	Approved PHI Employer contributions >10% of earnings Unapproved PHI Employer contributions
Notional Pay subject to USC	Approved PHI Employer contributions >10% of earnings Unapproved PHI Employer contributions
USC Pay	Approved PHI scheme contributions

Rates

The PHI Exempt Rate is prescribed by Revenue and set to 10%. This is applied to the earnings for PHI to check if the calculated contributions amount to a value above 10%. This is used to identify the contribution amounts that would be split as prestatutory and voluntary deductions.

You can update this as required if there are changes to the legislative requirements.