Are you self employed or an employee?
It is important that your status as a worker is correct and that you are taxed accordingly.
You can check your status in the Code of practice for determining employment or self-employment status of individuals.
If you are self-employed, you are responsible for the payment of your own tax and Pay Related Social Insurance (PRSI) and Universal Social Charge (USC). You will be engaged under a relevant contract.
If you are an employee, your employer is responsible for the collection and payment of your Income Tax (IT), PRSI and USC. You will work under your contract of employment.
How do you decide your employment status?
The following checklists give a general overview in deciding if you are an employee or a subcontractor.
A worker is normally an employee if they:
- are directed by someone on how, when and where to work
- have set working hours
- have no personal financial risk relating to the work
- receive a fixed wage
- supply labour only
- cannot subcontract the work
- are covered under the employer’s insurance
- work for only one person or business.
A worker is normally self-employed if they:
- control how, when and where the work is done
- control their working hours
- are exposed to financial risk
- control costs and pricing
- can hire other people to complete the job
- provide their insurance cover
- own their business
- can provide the same services to more than one person or business at the same time.
What do you do after you determine your status?
For the self-employed
If you are self-employed you must:
You may be entitled to some Department of Employment Affairs and Social Protection (DEASP) benefits. You are not entitled to holiday pay or protection from unfair dismissal.
If you are an employee:
- your employer will deduct Pay as You Earn (PAYE), PRSI and USC from your pay
- you may be entitled to some DEASP benefits
- you will receive the rights and entitlements associated with your employment.
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