Advice on PRSI

Kine

Hi,

I'm posting a quick question here in relation to PRSI. Firstly, a brief background on why. My new employer wants to pay me 75% of my pay above board, and the other 25% out of a seperate account (and of course not entirely...legal...).

Pluses: More cash into hand (however,, not that much...)

Negatives:
1) My PRSI contributions are lower, therefore this affects future pension payments, dental and all that jazz (please correct me if I'm wrong) so long-term, it's not ideal.
2) Mortgages: Of course, if I need a top-up, all my statements will say I get paid 75% of what I actually do, so can borrow less.
3) I get hammered by tax man if he finds out.

Basically, I don't want this situation to exist, and want it all above board, are there any other arguments to be made to my employer to do it all correctly?

Many thanks

Gibbins123

All hes escaping is the employers PRSI which can't be THAT much if its only Employers PRSI on 25% of your wages!

Tell him the exact reasons you stated... only twist it a bit. Tell him you ARE applying for a top up so you need your wages stated in full on your payslips.

Put your foot down.

Kine

Thanks, good idea to twist it a bit.

However, is that all he's avoiding (i.e. PRSI) as that couldn't be reason enough to do it (as you said, 25% of wages aint that much!!)

information

Kine wrote: »

Thanks, good idea to twist it a bit.

However, is that all he's avoiding (i.e. PRSI)

No
The money he pays you in cash, is money he is not disclosing to the revenue.

So he saves himself
* The VAT on this money that he should have paid/charged
* The income tax that he should have paid on the money

So it is a massive saving to him, what you think is a small amount of tax evasion is part of a much bigger operation, but you only see a small amount of it.

Mr. Incognito

An anonymous phonecall to the local Revenue district should sort that out with a Revenue audit.

Do no be a participant in fraud. It's illegal.