Job Seekers Benefit

[J.P.]

Hi All,

I have a query regarding Job Seekers Benefit entitlement – first, the background to my question.

I started a small business (IT consultancy) and formed a Ltd company in August 2014, with my wife and I named as company directors. As the business is at a very early stage, I have yet to take a salary from the business and my wife who does the admin, accounts, etc… for me (she puts in approx 8 hours per week in total ) is paid €350 per month from the business – so in 2014 she earned €1,750 from the business. She pays Class S PRSI on this income.

My wife also has PAYE income (€14,000 per annum & pays Class A PRSI on this income), she works 5 morning per week in a local school in a support role – she is let go at holiday time by the school, when historically, she was able to claim Job Seekers Benefit for the periods of her unemployment, as she returns to her PAYE role again when the school re-opens after the holiday period. We are living on her income basically.

She was let go for the summer holidays recently as normal and when she contacted the local social welfare office, she was informed that she is no longer entitled to Job Seekers Benefit as she is now self employed. Now I regret ever involving her in the business, as her Job Seekers Benefit payment for the period she is unemployed is far higher than I can afford to pay her. Is there anything we can do, as we were relying on this income for the summer period ?

Thank You

 

[vandriver]

Check #4 about subsidiary employment(might be relevant)

http://www.citizensinformation.ie/e...nts_and_work/jobseekers_benefit_and_work.html

 

[Black Sheep]

I'm just wondering why she paid class S PRSI in 2014 as her income appears to be below the level for that class

 

[J.P.]

I'm just wondering why she paid class S PRSI in 2014 as her income appears to be below the level for that class

Hi Black Sheep,

I don't know - the accountant set this up. If she did not pay Class S on this income, what Class PRSI should she pay on it ?

Thanks.

 

[Black Sheep]

Not sure what class prsi she should pay. Would she be considered an employee, in which case she would pay class A

 

[J.P.]

She contacted Social Welfare (met a very helpful girl) and explained her situation - what she was told is as follows (my summary of it ) :

1. If she was a director of the company and not getting paid - no problem, she could continue to claim her Job Seekers for the periods she is unemployed.

2. As she is a director receiving payment from the company - she is automatically Class S, so she can not continue to claim her Job Seekers for the periods she is unemployed.

So, it looks like she will not be able to claim for the periods she is unemployed.