Being Self-Employed and Employee

[widebody]

Sorry if this has been dealt with before, but I can't find the relevant info.

We are taking on a fella on 3 days per week in the near future. He had his own construction-related company, which now has no work. He will keep the company going in case anything arises, but for now is hoping to become an employee.

Given his company is still active, can he get an employee PRSI code? Or can each source of income be subject to different PRSI codes? Most importantly for him, can he start to acquire PRSI stamps while an employee at our company while he is still the director of another company?

This will all be run through our accountant but for now just looking for a starting point. My thanks in advance.

 

[Sconhome]

He should be able to allocate his credits and allowances to his employment with you. This would be his primary source of income so he should maximise the return from this. Depending on his shareholding of the company he could remain class S under the prsi rules for that employment.

Alternatively he could invoice you for the work as 'employee' as he would be available for other sources of income. This would eliminate paye and prsi from your operation. Obviously it depends on how long you would have work available for him.

 

[Graham_07]

We are taking on a fella on 3 days per week in the near future.

Alternatively he could invoice you for the work as 'employee' as he would be available for other sources of income.This would eliminate paye and prsi from your operation.

Being available for other sources of income does not, of itself mean that he is not an employee in this case. Being an employee or self-employed is a matter of fact, not something that the two parties can arbitrarily decide to apply depending on which suits them better. Revenue have a guide on the status of employees or self-employed here.

 

[J.Ryan]

Being available for other sources of income does not, of itself mean that he is not an employee in this case. Being an employee or self-employed is a matter of fact, not something that the two parties can arbitrarily decide to apply depending on which suits them better. Revenue have a guide on the status of employees or self-employed here.

The first post clearly states that the EE has his own company, the employer could engage that company to do the work, without breaching any Revenue guidelines.