Casual labor tax

Peatys

Have i to pay employers paye and prsi on a guy who does about 4 days a year for my company?

He has his own full time job, and gives me a dig out two weekends a year.

I was told by my accountant to pay him, and he looks after his own tax affairs in October..

Thoughts?

Squatter

Peatys wrote: »

Have i to pay employers paye and prsi on a guy who does about 4 days a year for my company? He has his own full time job, and gives me a dig out two weekends a year. I was told by my accountant to pay him, and he looks after his own tax affairs in October.
Thoughts?

How in the name of God did your accountant find out about him???

relax carry on

Peatys wrote: »

Have i to pay employers paye and prsi on a guy who does about 4 days a year for my company?

He has his own full time job, and gives me a dig out two weekends a year.

I was told by my accountant to pay him, and he looks after his own tax affairs in October..

Thoughts?

It comes down to a matter of fact regarding contract of employment and contract for employment whether someone is your employee or a self employed contractor responsible for their own tax affairs.

There's not enough information in your post to make a decision but I'd be looking for him to be registered as an employee rather than a self employed contractor.

Unless your accountant has more information, then they are in error.

This issue will probably become more noticeable next year due to the near real time reporting requirements for payments to employees under the PAYE modernisation program.

https://www.revenue.ie/en/self-assessment-and-self-employment/construction-industry/are-you-self-employed-or-an-employee.aspx

Peatys

Squatter wrote: »

How in the name of God did your accountant find out about him???

It's all above board, the guy invoices me for days completed and we transfer the agreed amount into his personal account from our business account.

Squatter

Peatys wrote: »

It's all above board, the guy invoices me for days completed and we transfer the agreed amount onto his personal account from our business account.

In that case surely there's a reasonable argument that the work he performs for you twice yearly could be regarded as a service rather than you having to treat him as an employee in your books?

I don't regard the man who cuts the lawn outside my business premises twice a month as my employee. I pay him for the service that he provides.

Peregrinus

Squatter wrote: »

In that case surely there's a reasonable argument that the work he performs for you twice yearly could be regarded as a service rather than you having to treat him as an employee in your books?

I don't regard the man who cuts the lawn outside my business premises twice a month as my employee. I pay him for the service that he provides.

There's obviously a slightly blurry line between "employee" and "bloke who provides a service as a contractor". But the mere fact that somebody only works four days a year doesn't mean he's not an employee. Nor does the fact that he invoices you.

It depends more on the nature of his role. Can he turn up and do the work whenever he likes, or does he have to fit in with your schedule? Is he working alongside regular employees, and/or basically doing work that regular employees do? Can he do the work however he likes, or is he subject to your direction? Could he send someone else along to do the work in his place? that kind of thing.

Peatys

Peregrinus wrote: »

Can he turn up and do the work whenever he likes, or does he have to fit in with your schedule? Production shutdown schedule

Is he working alongside regular employees, and/or basically doing work that regular employees do? All contractors in site

Can he do the work however he likes, or is he subject to your direction? Method statements in place

Could he send someone else along to do the work in his place? No, his previous experience with the type of equipment is essential.

Cheers, answers above

Peatys

relax carry on wrote: »

It comes down to a matter of fact regarding contract of employment and contract for employment whether someone is your employee or a self employed contractor responsible for their own tax affairs.

There's not enough information in your post to make a decision but I'd be looking for him to be registered as an employee rather than a self employed contractor.

Unless your accountant has more information, then they are in error.

This issue will probably become more noticeable next year due to the near real time reporting requirements for payments to employees under the PAYE modernisation program.

https://www.revenue.ie/en/self-assessment-and-self-employment/construction-industry/are-you-self-employed-or-an-employee.aspx

There's no contract in place, just if it suits him during the shutdown weeks, he can lend a hand. No obligation on either side

L1011

4 days a year invoiced has to be still seen as a contractor even with all the crackdowns on spurious self employment.