P60. Tax Deducted: 0.00 - Contribution Class: S. What?

gullyfoyle23

I work as a pushbike courier. I received my P60 back in December and upon review I have noticed that in the TAX section of the form everything reads 0.00. My concern is that my employer has not been paying PAYE and I may owe the revenue. My tax contribution class is S, I pay both PRSI and USC. A little bit baffled - any advice would be much appreciated.

relax carry on

gullyfoyle23 wrote: »

I work as a pushbike courier. I received my P60 back in December and upon review I have noticed that in the TAX section of the form everything reads 0.00. My concern is that my employer has not been paying PAYE and I may owe the revenue. My tax contribution class is S, I pay both PRSI and USC. A little bit baffled - any advice would be much appreciated.

Your tax could be zero depending on your earnings. What do your payslips show? Your final payslip for 2011 should match your P60 details. The S category refers to your PRSI class not tax.

http://www.welfare.ie/en/publications/sw74/pages/2whopaysclasssprsi.aspx

exaisle

Couriers pay their tax through the PAYE system, but are classed as self-employed for social welfare purposes. Your p60 should show your tax credits for the year. Multiply that figure by 5 and you'll get the amount you could have earned before you should have started paying any Income Tax.

You should note that as a class S PRSI contributor you are not covered for unemployment/jobseekers benefit if you become unemployed.

mkdon05

It looks like your employer has been paying you as a contractor and not an employee. The giveaway is the PRSI at class S, which is for director/Self employed people. You should confront your employer about this and if they start giving you bull saying your self employed, have a read up on 'contract for service and Contract of service'

gullyfoyle23

Basically my payslip shows PRSI and USC paid but PAYE has no total for the week. Tax Code is N, which I assume stands for normal.

mkdon05

exaisle wrote: »

Couriers pay their tax through the PAYE system, but are classed as self-employed for social welfare purposes. Your p60 should show your tax credits for the year. Multiply that figure by 5 and you'll get the amount you could have earned before you should have started paying any Income Tax.

You should note that as a class S PRSI contributor you are not covered for unemployment/jobseekers benefit if you become unemployed.

Are you sure thats the case for pushbike couriers?

mkdon05

gullyfoyle23 wrote: »

Basically my payslip shows PRSI and USC paid but PAYE has no total for the week. Tax Code is N, which I assume stands for normal.

It depends on how much you earned for the year and what your tax credit status is (Single/Married)

relax carry on

gullyfoyle23 wrote: »

Basically my payslip shows PRSI and USC paid but PAYE has no total for the week. Tax Code is N, which I assume stands for normal.

If you are a single person, you could have earned 16500 euro without paying tax in 2011. This is based on having the personal and paye credits of 1650 euro each and multiplying them by 5.

gullyfoyle23

Thanks for your responses. A bit more clarity now. Basically on my P60 for Tax Credit it says 3300.44. My total earnings are just above 11000, my PRSI is 140, Tax says 0.00 and USC is 100.

The whole area for pushbike couriers is very grey. Getting any useful information from the companies is rare as they are fond of playing the fool. I am basically a contracter who is treated like an employee and is classed as self employed by the revenue.

Daxve

That explains it your credits are €3300.44 therefore you can earn €16,502.20 (€3300.44 x 5) before you start to pay tax your tax deducted as €0 on earnings of €11,000 is correct.

I'd be more concerned about the PRSI and USC. I won't get into the whole class A class S thing but

PRSI on class S is 4% of all income so you should have paid €440ish.

USC is 2% on the first €10,036 (€200.72) plus 4% on the next €964 (€38.56). Total €239.28.

You appear to have underpaid both.

One last thing you should not have gotten a P60 in December a P60 cannot be issued until after the 31st of December as you must be in that employment on that date.