Was wondering if anyone knows where I stand, I am a chef and my husband has his own catering business, I am on maternity benefit at the moment, and due back to work in june. My husband has been trying to get a chef with not much luck. I always helped out when hes busy but with two kids now on top of working probably not as a much. We then talked about me leaving my job and working for him, which would be ideal, really as I could get the work done and work around the kids etc. We have asked several people accountants , business people and get all different answers. He is a sole trader, CAn I work for him , get paid a wage, prsi contributions etc and am I still entitled to all my entitlements, ie if I were to have another baby will I get maternity benefit, sickness benefit , dental benefit, state pension, come the time. As we don't want to go ahead with this if I lose all of these as he has none as a sole trader, some say I can, some say I can't, and when you even ring revenur etc don't get a straight answer. Thanks in advance
working for husband question?
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Brendan Burgess
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It is a very interesting question.
If you go into partnership with your husband, you will both be self-employed, so you would not be getting those benefits.
If you become a PAYE employee of your husband, I cannot think of any reason why you would not get those benefits. You would be classified as an ordinary A1 employee for Social Welfare purposes. The best thing is to phone the "Scope Section" of Social Welfare and ask them what your Social Welfare class is. If it's A1, you are entitled to the benefits when you need them.
However, they are expensive. Your husband will have to pay 10.25% of your salary as Employer's PRSI. You will have to pay ordinary employees prsi. As self-employed, I think that the employee is much the same.
Another issue is that you will both be dependent on your husband's business. In these tough times, it is useful for a husband and wife to have two separate sources of income, in case one goes.
Brendan
If you go into partnership with your husband, you will both be self-employed, so you would not be getting those benefits.
If you become a PAYE employee of your husband, I cannot think of any reason why you would not get those benefits. You would be classified as an ordinary A1 employee for Social Welfare purposes. The best thing is to phone the "Scope Section" of Social Welfare and ask them what your Social Welfare class is. If it's A1, you are entitled to the benefits when you need them.
However, they are expensive. Your husband will have to pay 10.25% of your salary as Employer's PRSI. You will have to pay ordinary employees prsi. As self-employed, I think that the employee is much the same.
Another issue is that you will both be dependent on your husband's business. In these tough times, it is useful for a husband and wife to have two separate sources of income, in case one goes.
Brendan
Z
z109
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You will get state pension regardless - self-employed PRSI contributions (that the self-employed person pays) cover it. In any case, you have seven years exempt from the birth of your youngest child (they are qualifying years).
As a spouse of a self-employed person you can work for them without them having to pay 10.25% employer's PRSI, but you would not be entitled to Jobseeker's Benefit, Sickness, Dental or Maternity (I believe). But I think you can opt to pay class A PRSI so you can pay 10.25% of what you earn (or rather your husband can pay that on your employment). If you can opt to do this, then I believe you will keep your existing PRSI related benefits (but this is based on logic not knowledge!).
I would talk to the Department of Social and Family Affairs and get a judgement in writing whatever you decide to do; nothing anyone else tells you can carry any weight as they are the ones that will decide what you should receive should you claim for any further benefits.
As a spouse of a self-employed person you can work for them without them having to pay 10.25% employer's PRSI, but you would not be entitled to Jobseeker's Benefit, Sickness, Dental or Maternity (I believe). But I think you can opt to pay class A PRSI so you can pay 10.25% of what you earn (or rather your husband can pay that on your employment). If you can opt to do this, then I believe you will keep your existing PRSI related benefits (but this is based on logic not knowledge!).
I would talk to the Department of Social and Family Affairs and get a judgement in writing whatever you decide to do; nothing anyone else tells you can carry any weight as they are the ones that will decide what you should receive should you claim for any further benefits.
Social Welfare will not accept employment by a spouse as insurable for class A PRSI as it considers that a normal employer/employee relationship could exist in such circumstances.
As far as I know the Social Welfare Act explicitly rules that such employment is not insurable for PRSI
As far as I know the Social Welfare Act explicitly rules that such employment is not insurable for PRSI
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zooned
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Just to give you my personal experience of employing or being employed by your spouse. When I first set up as a sole trader I employed my wife as a PAYE employee.
My accountant told me that she should be on class A PRSI so for a couple of years we paid her PRSI payments and I paid employers PRSI.
When my wife became pregnant she applied for maternity benefit.
She was refused this on the grounds that as she was employed by her spouse she should have been on class K or class M PRSI (depending on salary) which don't entitle you to any benefits.
Even though we had no problem paying the class A rate we were told we couldn't so we applied for a refund of the PRSI payments that we had paid previously.
My accountant said he never heard of this but as this was a decision of the scope section there was nothing we could do.
So basically you could do the same work as any other employee and be paid the same salary but because you are employed by your spouse you are discriminated against.
If you go to welfare.ie and search for leaflets SW124 Working With Your Spouse and SW102 Family Employments & PRSI they should explain it for you.
My accountant told me that she should be on class A PRSI so for a couple of years we paid her PRSI payments and I paid employers PRSI.
When my wife became pregnant she applied for maternity benefit.
She was refused this on the grounds that as she was employed by her spouse she should have been on class K or class M PRSI (depending on salary) which don't entitle you to any benefits.
Even though we had no problem paying the class A rate we were told we couldn't so we applied for a refund of the PRSI payments that we had paid previously.
My accountant said he never heard of this but as this was a decision of the scope section there was nothing we could do.
So basically you could do the same work as any other employee and be paid the same salary but because you are employed by your spouse you are discriminated against.
If you go to welfare.ie and search for leaflets SW124 Working With Your Spouse and SW102 Family Employments & PRSI they should explain it for you.