Employing Casual Worker and paying PAYE/PRSI

T

TenaciousD

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My mother is planning to employ my husband (her son in law, therefore not on prescribed relative list) for 2 months as a casual worker (4-5 hours a week doing website design). She does not plan to setup as a sole trader or company as she just wishes to engage him temporarily to complete this work and has no business to speak of. He is currently unemployed (12 mths) and we are assessed together for tax purposes.

Have I got this information straight? :

From what I understand she'd have to completed the PremReg form with Revenue to register for paying PAYE/PRSI. As the wages wouldn't be that much (100-150 a week), I think PAYE wouldn't apply.

As the employee is earning under €352 a week, my husband will not have to pay PRSI, but my mother as an employer will have to pay ER contributions (10.75%). The PRSI Stamp would be A0
AO applies to employees, including medical card holders and those getting Widow's/Widower's Pension, Deserted Wife's or One-Parent Family Payment, with earnings between €38 and €352 per week are category AO
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Is that right?
As far as other tasks go, she'd have to complete payslips and figure out the PRSI contributions she'd have to make and then pay them to Revenue. Is that it or is there something else she'd have to do about this?
 
Given the amounts and timescale involved, surely your mum should just pay him "cash in hand"?

I'm not condoning or encouraging tax evasion but in the circumstances you've outlined, registering as an employer etc seems ridiculous.
 
I hear you .. but it'd be good to get PRSI stamps contributed also as he's currently signing on for Credits.
 
I've phoned both Revenue and the Dept of Social Welfare and this is the info I've understood so far. Can anyone please confirm if I've understood it correctly?


  1. Email the Revenue Commissioners to register as an employer. Email the following details: Employer PPS Number, Date of Employment Start, Type of Employment. I presume this sets you up in ROS so you can do all your filing online?
  2. Keep copies of payslips and give copy to employee
  3. Complete a P30 Return monthly and return to local Revenue office:
    • PAYE: €0 paid (under threshold)
    • PRSI: Class A0, 8.5% contribution by Employer, 0% contributed by Employee
  4. Complete a P35 Annual Return
Other Questions:

From the "Revenue Guide about Payments to the Collector General" I read that if the pay is less than €28,000 a year then my mother would only have to submit a quarterly return, instead of monthly. Is this correct? The Revenue person on the phone said monthly.
 
Why not proceed as Pat Bateman above has mentioned. Your spouse could the pay voluntary contributions, if you are that worried about PRSI.
 
I think so, that you don't need to think about PRSI anyway



 
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