part time job and effect on JA .

hi,

i am on JA ,I also get a mortgage supplemnt. I have been offered a PT job just 3 nights a week doing deliveries for a drinks company.

I have been told to give an invoice in every week to get a payment.

I guess this means I would be self employed but only on a part time basis.

It is only 15hrs a week and the wages would be 120 euro.

The question is will I lose my Mortgage allowance and medical card entitlements if I take up this position.

Also how much actual JA will I lose?

I dont mind breaking even but I dont want to be down obviously.

Is there a criteria on how this will be worked out by the DFSA?

Please help! I have to let the employer know very soon!!

bit more detail.

In actual fact what happens is this, at the end of the 3 nights work there is a duplicate form which i would be required to sign. I keep one copy, they keep the other.

On the form are my name address and PPS number and the amount I am getting paid (120 euro), there are no deductions, but I was wrong about having to issue an invoice,they say there is no need and its up to me how I declare what they have paid me, essentially they are covering themselves which is fine.

I am not employed by them as such but I must show up on their books through my PPS number,I am a little confused as to if this would be considered self employment?

Anyway on the face of it it seems straight forward,but is it ever!

I read on the dept website that I should approximate how much I am likely to earn over the course of a year and divide it by 52 to give a means,

does this mean that if I put down 120 a week that the full 120 a week is counted as means? What kind of incentive would that be?

And there is also the issue of losing other benefits possibly?

Pleeeaase can someone with proper knowledge try to answer this query soon!

Regarding your mortgage supplement - not all of your earnings will be assessed against you.

The first 75 euro of your earnings will be disregarded.
25% of the remaining earnings will be disregarded.

JA assess part time earnings as follows.

You are allowed to earn 20 euro per day up to a maximum of 3 days per week.
60% of the remainder is assessed as means, and will be subtracted from your full rate JA.

This link explains the means test in a bit more detail
Means Test for Jobseeker's Allowance

If you've been unemployed and in receipt of JB or JA for 12 months or more, and take up part-time work, you can retain your medical card for 3 years from the date that your income exceeds the medical card guidelines. If you have been in receipt of JB or JA for less than 12 months, your medical card will have to be reviewed to determine continued entitlement.

Other AAMers may have advice on the proposed method of payment for your work - it sounds as if you're being treated as a sub-contractor, responsible for your own Tax, PRSI, etc...

Thank you so much for your expertise in this area Gipimann,it is not the first time you have been so helpful to me!

Can I just ask if this would be correct based on what you say,

I recieve 125 pw Mort supp. So if I earn 120 per week it would work like this,

125euro supp 75euro disregard, leaves 50euro,

25%of this amount=12.5euro

Subtract this amount from the 50,means I will be deducted a total of 37.50 leaving me with an entitlement of 87.50 euro? Is this correct?

Also,if I am considered as self employed(this is the grey area) would i be entitled to any supplement?

I do understand the form ula used for PT workers but are the disregard the same of totally different when it comes to self employment?

Again so much thanx.

are you confusing the fact that there are two separate mens tests? The MIS calc seems correct but Gipimann is more familiar with this.
The JA means test is different for self-employed and employed workers so you must determine which you are first.
If it is self-employment, then projection of earnings will have to be done and you need to talk to SW about this as each individual case is different.

If it is employment (i.e PAYE/PRSI @ Class A), the the calculation is nett pay, say €120 less €60 (3 X €20 disregard), X 60%= €36 deducted from weekly rate of JA.