Who pays what, new summer job

Testacalda

Hi all,

despite searching the threads on here and general searches on the internet I couldn't get the answer to my problem

My situation is that I am currently a secondry school teacher (newly qualified) and work on a part time basis in a school since November (substitute contract), and I will finish work next week. I dont get paid for the summer like a permanent teacher, so i have arranged a job with a local agricultural contractor for the summer. We agreed on a net figure that I will be paid per hour.

He says that he will pay PRSI and USC for me, then I must pay my own PAYE. Is this normal? My weekly pay will vary week to week, due to work load, weather conditions etc... does that make a difference?

What is the normal way a situation like would work, should he pay all deductions for me and give me a cheque for the net figure? And what does he need from me in order for my tax to be paid?

Sorry if I am asking basic level questions, but I have gotten answers from everyone and opinions vary wildly!

barneystinson

Testacalda wrote: »

Hi all,

despite searching the threads on here and general searches on the internet I couldn't get the answer to my problem

My situation is that I am currently a secondry school teacher (newly qualified) and work on a part time basis in a school since November (substitute contract), and I will finish work next week. I dont get paid for the summer like a permanent teacher, so i have arranged a job with a local agricultural contractor for the summer. We agreed on a net figure that I will be paid per hour.

He says that he will pay PRSI and USC for me, then I must pay my own PAYE. Is this normal? My weekly pay will vary week to week, due to work load, weather conditions etc... does that make a difference?

What is the normal way a situation like would work, should he pay all deductions for me and give me a cheque for the net figure? And what does he need from me in order for my tax to be paid?

Sorry if I am asking basic level questions, but I have gotten answers from everyone and opinions vary wildly!

It is quite a basic question, so I'm surprised you haven't been able to find answers, and even more surprised that everyone has different opinions...

The first question is whether you're an employee or self employed for the purpose of this job. Without giving specific advice (prohibited on this forum), It's clear you'll be an employee. In which case your employer is obliged to operate the PAYE system. This basically means an employer is to deduct the necessary PAYE, PRSI & USC and pay the employee a net amount after all deductions. http://www.revenue.ie/en/business/paye/guide/index.html

allthedoyles

As a Paye employee you are obliged to receive a payslip every week / month depending on your wage frequency .

all deductions should be there as mentioned above .

PAYE and USC are now linked together on a tax credit certificate , so it would be wrong for any employer to deduct USC and not deduct paye .

I think its also wrong to agree a net pay per hour as the hourly rate would change from €38-352 , and €352-€500 and €500 - infinity

paul71

Be carefull with this, I have seen a little trick that was used be unscrupulous summer language schools in the past. They take on teachers for a few weeks in the summer and tell them that they will pay their PAYE, PRSI, USC. In reality what they do is put them on emergancy tax. A personal on emergency tax is taxed as follows

Week 1 to 4 1/52 of single personal tax credit, 1/52 of single personal Lowest Rate of Tax , Week 5 to 8 Nil tax credit 1/52 of single personal Lowest Rate of Tax, Week 9 onwards Nil tax credit Nil Highest Rate of Tax
The result is if you work for 8 weeks you pay little or no tax under the PAYE system but may end up underpaying at the end of the year due to your other employment.

Best advice - never agree a net pay figure.