Employing a "sub contractor"

My brother is in a partnership. They have employed a person as a sub contractor (who is not registered as self employed or as a sub contractor). He no longer works for them and now wants to sign on. The Social Welfare office want a letter from him stating when he last worked. My brother knows that he has not paid any tax on any money he has earned. How will this affect my brother's business? I am presuming that someone will have to pay the tax that is owed.

The Revenue could well deem this guy an employee. If they do any payment he received will be grossed up and the PAYE/PRSI will have to be paid by your brothers partnership.

The fault will almost always lay with the employer!!

TripleA is right. Your brother had an obligation to either treat this man as an employee and deduct PAYE and PRSI or as
an unregistered sub-contractor and deduct 35% from his bill and return this to the Revenue Commissoners.

nolo77 said:

TripleA is right. Your brother had an obligation to either treat this man as an employee and deduct PAYE and PRSI or as
an unregistered sub-contractor and deduct 35% from his bill and return this to the Revenue Commissoners.

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This would depend on the industry that the person is working in. the rct rules only effect certian industries for example the building industry etc etc.

Thanks for your replies guys. They are in the flooring industry, which I think would fall into "construction" for these purposes, would it?

yes.