Wage subsidy continuing, with a 2nd job

double jobbing

Hi,

Just wondering, how should I go about things when being paid wage subsidy while undertaking a second job? (I checked. It's entirely legal). If my regular employer got wind of my new employment would they be within their rights to boot me off the wage subsidy? Do they get any sort of alert from revenue saying I'm working elsewhere and how much I am earning?

double jobbing

Anyone?

Irishphotodesk

double jobbing wrote: »

Anyone?

You need to give people a chance to sleep, you started the thread at approx 5pm and 5hrs later you are sending a Ferris bueller style remark, I don't know if you are trying to be funny or simply just impatient.

The type of person who is willing to and able to help will do so when they can.

Why not ring revenue/deasp and ask their opinion/advice ?

One thing I would suggest, be careful, as I understand it the payments are taxable at the end of the year, so you could find yourself with a substantial tax bill later in the year.

Ps. Might be of benefit to have this thread in the taxation section of boards.

lughildanach

You do have a potential conflict here. You are being paid wages by your employer through the wage subsidy scheme because you remain available for work for them, regardless of whether they have the work to offer you. If you are working for another employer, you could be viewed as not available for your original employer. They could validly take issue with it, although they are not at any financial loss so they don't have any real incentive to question it. Its not straight forward though, as they have not been able to offer you work, so depending on your contract you may or not be in breach.

If your tax credits and bands remain allocated with your original employer, then it is unlikely that they will notice that you have additional income. Your new employment however will be subject to much higher taxation, taxed at 40% rate income tax with no tax credits to reduce the liability, and USC charged at 8%. Might be no bad thing though, as any overtaxation on the second income could help offset any undertaxation on the wage subsidy.

double jobbing

lughildanach wrote: »

If your tax credits and bands remain allocated with your original employer, then it is unlikely that they will notice that you have additional income. Your new employment however will be subject to much higher taxation, taxed at 40% rate income tax with no tax credits to reduce the liability, and USC charged at 8%. Might be no bad thing though, as any overtaxation on the second income could help offset any undertaxation on the wage subsidy.

But the 40 percent would be during the emergency tax period.

If I inform revenue that I have a second job, which I need to do to come off the 40 percent rate, would the original employer be notified of this and potentially stop the wage subsidy if they thought it indicated I wouldn't come back? (it's an agency, my disappearance wouldn't offend them like it would a small business)

If that is the case can I work for, for example, 6 weeks with the new lot, then submit the employment to revenue and get back half of the tax I paid?

For example- new job pays 16 p/h (original pays 17.50). Under normal circumstances, working 40 hours at 16 would be 640 gross, minus 20 odd percent would be circa 494,.

640 taxed at 40 percent (emergency tax) would be around 384 net. Minus 8% USC you mention takes it down to about 334.

When I come off emergency tax in, say, 6 weeks, and go back to my old job, would I have 110 x 6 refunded to me by revenue? Am I better staying on emergency tax until I either

a- decide to stay with the new employer

b- go back to the old employer, because if I come off emergency tax now my old employer will be notified I'm working elsewhere

It seems from looking that any excessive tax I pay while on emergency tax is refunded in the next pay run after you come off emergency tax.

double jobbing

Irishphotodesk wrote: »

Why not ring revenue/deasp and ask their opinion/advice ?

One thing I would suggest, be careful, as I understand it the payments are taxable at the end of the year, so you could find yourself with a substantial tax bill later in the year.

Because last time I rang them to change jobs they couldn't get me off the phone fast enough and talked a load of vagueness about tax credits. They're about as much use at the citizens information website.

lughildanach

double jobbing wrote: »

But the 40 percent would be during the emergency tax period.

If I inform revenue that I have a second job, which I need to do to come off the 40 percent rate, would the original employer be notified of this and potentially stop the wage subsidy if they thought it indicated I wouldn't come back? (it's an agency, my disappearance wouldn't offend them like it would a small business)

Its not a matter of informing revenue. Even when you inform Revenue, you will still pay 40% Income Tax and 8% USC on your new job unless you allocate some of your tax credits and tax band to the new job.

Once you allocate your bands, your old employer will also receive new tax credit certificate/RPN advising them of the lower credits/bands, and may detect that you have a new job.

If you are worried that they might think you are not coming back, you could always just tell them the position. However, strictly speaking if you are not available to do your old job (even if they don't have work for you), they could try to terminate your employment. This would be extremely harsh and could be fought. I think its unlikely, but some employers are harsher than others.

lughildanach

double jobbing wrote: »

It seems from looking that any excessive tax I pay while on emergency tax is refunded in the next pay run after you come off emergency tax.

Exactly. Any overpayment of tax will be refunded. If you stay on a cummulative tax basis, you can get it back as soon as the second job has ended.

Or you can opt to go on a Week 1 basis and store the overpayment until the end of the year to offset any tax that is due on your Wage Subsidy Scheme but which hasn't yet been taken.

double jobbing

lughildanach wrote: »

Exactly. Any overpayment of tax will be refunded. If you stay on a cummulative tax basis, you can get it back as soon as the second job has ended.

Or you can opt to go on a Week 1 basis and store the overpayment until the end of the year to offset any tax that is due on your Wage Subsidy Scheme but which hasn't yet been taken.

Many thanks for your advice. From reading this it sounds like my best bet is to stay on emergency tax for the foreseeable with the new employer (won't kill me as I'm still getting 395 from the old one, at a guess emergency tax from the new employer will see me take home circa 350 off the top of my head). Still have enough cash in my pocket and I'll be due a nice refund at the end of it all.

So if I work 10 weeks with the new employer, then go back to my original employer, at that stage I call revenue and tell them I have finished the job I was on emergency tax for, and want all accumulated overpaid tax refunded. Correct?

Is there a complication if I receive my last paycheque from Employer II BEFORE I decide I want to end this employment?

e.g. I get paid next Friday for days I worked this week. There are delays with the job and I never work for them again (already unsure if we're back Monday, tis the times we live in). iF I never receive another pay run from them again after 29/05, and I only declare the job dead a week later, where does my refund come from?

re all this talk of wage subsidy pay being tax liable, if one was in a job that paid a gross wage of 395 p/w that would have them earning a wage of under 10 euro per hour. Don't people earning this little in normal times end up paying feck all USC and income tax anyway?

lughildanach

double jobbing wrote: »

So if I work 10 weeks with the new employer, then go back to my original employer, at that stage I call revenue and tell them I have finished the job I was on emergency tax for, and want all accumulated overpaid tax refunded. Correct?

Almost correct. You will not necessarily be on emergency tax. Emergency tax is for those who do not yet have a tax credit certificate/RPN. You should still be issued with an RPN, but just it doesn't allocate the tax credits/bands to your second employer, so they have to tax everything at the higher rate and with no credits. Its the same calculation as emergency tax, but strictly speaking its not emergency tax.

When second job is completed, you can ask for a refund of any overpayment of tax through My Account.

You will still owe any uncollected tax on your wage subsidy payment.

double jobbing

Cheers.

lughildanach wrote: »

You will still owe any uncollected tax on your wage subsidy payment.

Still though, a person who takes home 395 per week in their regular job would pay feck all tax anyway, wouldn't they?

lughildanach

double jobbing wrote: »

Cheers.




Still though, a person who takes home 395 per week in their regular job would pay feck all tax anyway, wouldn't they?

If it is their only income, yes.