Hiring Employees vs Paying Contractors

ir555

Hi,

Apologies if this has been addressed before - have tried searching.

Starting a new seasonal business. Will run for 6 months of the year (a few staff full time for 3 months and lots of part time throughout the 6 months).

I see from a recent post that the "general" cost on top of employees wages is about 11% to the employer.

Can anyone tell me if it would be possible to just have the people working for me invoice the company directly for their costs (i.e. wages).

Surely this sounds a little to simple to avoid paying the 11% cost..

Appreciate any assistance and apologies for my ignorance in all things relating to accounting.

Cheers
D

kennyb3

Perhaps read this first:

http://www.revenue.ie/en/tax/rct/determining-the-correct-employment-status-of-a-worker.html

And if you ve any further question dont hesitate to ask.

ir555

Thanks very much!

All questions answered by your link.

D

Gloomtastic!

kennyb3 wrote: »

Perhaps read this first:

http://www.revenue.ie/en/tax/rct/determining-the-correct-employment-status-of-a-worker.html

And if you ve any further question dont hesitate to ask.

Nice link.

Given the choice I would always opt for the contractor option - both as the supplier and client. There is no better incentive to work than if you don't, you don't get paid. Call me old-fashioned like that! :rolleyes:

physioireland

Hi Guys,
I had a similar question, but after reading the link, i'm still not sure which category I fit into. Maybe someone could help?? Or point me in the right direction

I was hoping to work here in Ireland as a self employed healthcare practitioner in a clinic situation where I would see patients on an appointment basis.

At the end of each week, I would issue the clinic with an invoice for work completed (percentage basis - on the number of patients seen). I am also free to work for myself or other Clinics should I wish to do so, so this would not be considered a locum position.

I feel that in the Revenue document - points for self employed persons fit my situation but I see many in the employed description which also apply. How do you get a determination without giving your details to Revenue? From what I am aware, they will not give you an answer unless you are actually in the role.

I would be grateful for any advice.

Maybe there are some healthcare professionals out there who would be in a similar position and might be able to shed some light? What way do you operate this type of contract?

Many thanks.
(A newbie today would you believe!!!)

NumbrCrunchr

Hi Physio Ireland

Seems like you would fall into the self employed category but might be an idea to check with the GP or the practitioner whose clinic you would be operating out of. Revenue are going after locums currently and the risk is really with the practitioner.
If they are happy to treat you as self-employed you may be OK

Regards
Numbercruncher

kennyb3

NumbrCrunchr wrote: »

Hi Physio Ireland

Seems like you would fall into the self employed category but might be an idea to check with the GP or the practitioner whose clinic you would be operating out of. Revenue are going after locums currently and the risk is really with the practitioner.
If they are happy to treat you as self-employed you may be OK

Regards
Numbercruncher

I'd second this.

But would ask - when you say clinic is it a GP, nurse and so on clinic? I assume so! rather than you being a member of a bigger physio clinic???

As said above this might end up going the way of locums (google that) but you would be considered self employed at present anyway subject to my question above re the type of clinic.

Regards,

Brian

dbran

Hi

The revenue has ruled that if you are a doctor who is engaged by GPs on a part-time, temporary or non-permanent basis you are a locum.

It dosent matter if you are working for other clinics.

You are not self employeed - you are an employee and the PAYE system must be operated on your salary.

http://www.revenue.ie/en/practitioner/ebrief/2011/no-082011.html

But as the guys have said the risk is with the clinic and not with you.

Kind regards

dbran

kennyb3

dbran wrote: »

Hi

The revenue has ruled that if you are a doctor who is engaged by GPs on a part-time, temporary or non-permanent basis you are a locum.

It dosent matter if you are working for other clinics.

You are not self employeed - you are an employee and the PAYE system must be operated on your salary.

http://www.revenue.ie/en/practitioner/ebrief/2011/no-082011.html

But as the guys have said the risk is with the clinic and not with you.

Kind regards

dbran

Is a physio a doctor?

physioireland

Thankyou everyone for all the replies. I'm finding it hard to get any direction as many of my contacts are working in the public sector.

Its a general physio, osteopathy, pilates etc clinic. No GPs.
The other option being discussed is a room rental agreement (charged per patient)?

Do you know how helathcare practitioners set up agreements like this within similar clinics? I'd be grateful if anyone had a general outline; what should be included/excluded.

If Revenue are targeting our sector, do they have any guidelines?

Cheers everyone for your time.