Hired by company,pay own tax.

the whole year inn

I had an interview during the week from an American company,its remote tech support,interview went well,but the interviewer mentioned that they pay me but I have to settle the tax my self.
Has anyone experience doing this,I had a search but thought I would ask here if anyone had direct experience of this?

davo10

the whole year inn wrote: »

I had an interview during the week from an American company,its remote tech support,interview went well,but the interviewer mentioned that they pay me but I have to settle the tax my self.
Has anyone experience doing this,I had a search but thought I would ask here if anyone had direct experience of this?

You are a self employed contractor. You need to discuss this with an accountant, the payment you receive will be gross pay, you pay tax on it.

the whole year inn

davo10 wrote: »

You are a self employed contractor. You need to discuss this with an accountant, the payment you receive will be gross pay, you pay tax on it.

Can I not set this up myself instead of paying an accountant. Does that mean I have to take my holiday pay out of what I earn and the company doesnt pay for it ?

davo10

the whole year inn wrote: »

Can I not set this up myself instead of paying an accountant. Does that mean I have to take my holiday pay out of what I earn and the company doesnt pay for it ?

You can of course do your own tax, but, please don't this as an insult, you don't know anything about this and you will need professional advice before you accept the job. You need to know how much your net will be after tax, you need to know about pensions (great way of reducing tax), you need to know about your entitlements as a contractor rather than an employee. Also, you are likely to be on a fixed term contract rather than a contract of indefinite duration, that means they can let you go during/at the end of the contract.

Eire Go Brach

Companies specialise in this for a fee. They set you up under an umbrella company. Google umbrella company and take your pick. Recruitment agencies can advise of you are interviewing through them.

the whole year inn

Eire Go Brach wrote: »

Companies specialise in this for a fee. They set you up under an umbrella company. Google umbrella company and take your pick. Recruitment agencies can advise of you are interviewing through them.

whats the fee of these companys ,just a ball park.

dilallio

Eire Go Brach wrote: »

Companies specialise in this for a fee. They set you up under an umbrella company. Google umbrella company and take your pick. Recruitment agencies can advise of you are interviewing through them.

+1
I would recommend this option, especially starting out. These companies make it easy to get up and running quickly, they will organise necessary insurance, calculate taxes owed, and pay these taxes s well as filing the returns (tax & CRO) necessary to meet your obligations, all for a relatively small monthly fee which is deductible from tax. They will then pay you your net salary quickly.

wally1990

Ring this crowd tomorrow
They are the leader accountants for contractors
They can get you set up for all this and explain it to you
http://www.contractingplus.com

https://m.youtube.com/watch?v=ejkmk5SniSs

Atlantic Dawn

the whole year inn wrote: »

whats the fee of these companys ,just a ball park.

Circa €100 a month would be a good guide, remember though that you can put that against your tax as an expense too so nearer €50 a month in real cost.

JCX BXC

I'd be quite annoyed, having to pay people in order to do something I'd consider an employees job, payroll.

At least you were told upfront about it.

the whole year inn

Thanks for the replies,if I get a job offer I ll contact the companys.Its annoying paying the extra 50 a month but its the only option right now.

micks

the whole year inn wrote: »

Thanks for the replies,if I get a job offer I ll contact the companys.Its annoying paying the extra 50 a month but its the only option right now.

there's more to it that just that fee

you need to take into account the bits an employer normally covers
eg
- pension
- holiday pay - approx 8%
- sick pay

it does have benefits but make sure you dont go into it blind
the "salary" should be higher than you would expect as an employee doing the same role

the whole year inn

micks wrote: »

there's more to it that just that fee

you need to take into account the bits an employer normally covers
eg
- pension
- holiday pay - approx 8%
- sick pay

it does have benefits but make sure you dont go into it blind
the "salary" should be higher than you would expect as an employee doing the same role

Its 31k ,its tier 1 tech support working from home,Is that enough to go ahead with this,I live in the west of Ireland so rent is cheap so will be saving there.Even if I done it for a year for experience alone as I am just out of college ,but have no experience and not finding not much luck with getting interviews due to lack of experience.
What would take home pay be after all is said and done?

jimmycrackcorm

Given you would be home based and living in a cheap area then it would be good. Don't forget you can also expense anything business related. E. G. Mobile phone, laptop, broadband, Partial costs for electricity and heating.

amtc

I used contracting plus. I opted to be taxed as an employee as it was a one off contract. They were very efficient and paid on time.

the whole year inn

Thanks for all the replys,some great info there.

BailMeOut

You have four choices here

1. You try convince the USA company to setup a company in Ireland and that company pays you.
2. You work as a sole trader and invoice the USA company each month for your services and then get an accountant to do your annual taxes. I pay around €500 per year to my accountant who saves me this and lot more in taxes each year so money well spent.
3. You incorporate yourself and then have the USA company pay your own company which in turns pays you. Again you need an accountant to do all this work and the process is not as difficult as it may sound but your annual accountancy fees will be higher. If however done right there are lots of benefits to doing this.
4. Get the USA company to pay some umbrella company and they pay you (as suggested in post).

Personally I would just do #2 which might sound arduous at first but really quite straightforward for any any decent accountancy firm. Something like 1 in 5 workers in Ireland are self employed so in the same boat as you.

maisiedaisy

Am in the same boat as the OP except company is UK based. Never knew about umbrella companies, may look into that! Thank you!

bennyineire

the whole year inn wrote: »

Its 31k ,its tier 1 tech support working from home,Is that enough to go ahead with this,I live in the west of Ireland so rent is cheap so will be saving there.Even if I done it for a year for experience alone as I am just out of college ,but have no experience and not finding not much luck with getting interviews due to lack of experience.
What would take home pay be after all is said and done?

Apple ? but regardless go for it, it'll be good experience.
My first gig in IT was 4 years ago as tier 1 tech support was 25K and I had to commute to Dublin for it (earning much more now though)

draiochtanois

This post has been deleted.

BailMeOut

at €31k per year you will pay very little tax and your take home will be at least €25k. If you setup as self employed and are working from home you can write off some of your home office expenses (rent, heat, power, broadband, office equipment, etc..). An accountant can help you here but should help push up your take home pay.

the whole year inn

bennyineire wrote: »

Apple ? but regardless go for it, it'll be good experience.
My first gig in IT was 4 years ago as tier 1 tech support was 25K and I had to commute to Dublin for it (earning much more now though)

No its not Apple.If I get offered the job I will take it!