Harry works in a bank. He has taxable investment income totalling €3,000 in 2020. What amount of PRSI, if any, must Harry pay on this investment income for 2020?

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Prepare for the QFA Investments Exam 1. Study with flashcards and multiple-choice questions with detailed explanations. Enhance your understanding and succeed on your exam!

Multiple Choice

Harry works in a bank. He has taxable investment income totalling €3,000 in 2020. What amount of PRSI, if any, must Harry pay on this investment income for 2020?

Explanation:
PRSI is charged on earnings from work—wages, salaries, and other insurable employment income. It does not apply to passive investment income such as interest or dividends. Since Harry’s €3,000 is investment income and not earnings from employment, it isn’t subject to PRSI in 2020. You’d handle that income with income tax and USC, but not PRSI.

PRSI is charged on earnings from work—wages, salaries, and other insurable employment income. It does not apply to passive investment income such as interest or dividends. Since Harry’s €3,000 is investment income and not earnings from employment, it isn’t subject to PRSI in 2020. You’d handle that income with income tax and USC, but not PRSI.

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