Full time student works part time. Needs tax/pay advice.

A

Athena50

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Hi
Hope this is in the right place - am brand new to Askabout and think I've got the hang of the posting guidelines so here goes:

My 18yr old daughter started university this year and has a part time job at the weekends to supplement the financial support we give her (rent/food and essentials). She works on average between 12 and 17 hours per week at minimum wage. Her employer has told her that if she officially pays her 5hours per week it will help her tax wise. She is paying her only some of the additional hours in cash and has so far not paid her any of the 'official' pay (she's been working there for two months now). So she is owed the bulk of the earnings she has made to date. Could anyone tell me what her employer is talking about? Isn't it the case that taxation is the same for everyone .i.e. that you are allowed to earn so much before tax kicks in any given tax year and that the number of hours worked in any given week is irrelevant in the overall context?
 
I think she is being taken for a ride beaause she is working and not being paid for it.

The employer should be deducting any PAYE/PRSI and giving a payslip. As your daughter is earning such a small amount, there would be no PAYE, its below the threshold.
 
Thanks - I can't figure out what this 5-hour thing is all about - I've never heard of anything like it. I think the employer mentioned something about 'cut offs' but not sure exactly what she said about that.
 
I have a bad feeling about his arrangement. She is legaly oblidged to receive a payslip.

Get onto your local citizen information office immediately and discuss this with them. Failing that, you will have to tell the employer that unless all pay is brought upto date, she will have to discuss this with Revenue. She will get paid then.
 
Athena50 said:
Thanks - I can't figure out what this 5-hour thing is all about - I've never heard of anything like it. I think the employer mentioned something about 'cut offs' but not sure exactly what she said about that.
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I suspect it is to keep her under the PRSI threshold (€38), and is to the employer's benefit, not hers.
That would put her on class J, which only costs the employer 0.5% instead of 8.5% for class A, but it doesn't entitle you daughter to any benefit later.
 
It might that if the employer has to pay PRSI he will reduce her gross to keep the cost to him the same and reduce her net pay as well
 
Sounds mad... she needs to get employer to pay her properly. If company only pays part via books and pays remainder in cash then im not sure how he/she can balance year accounts. Her liabilities will be small as income is low so in her best interest. Note 2 months is a long time and she should get paid at end of each month as a minimum.
 
I agree with what Berni noted above- the employer appears to be trying to ensure that your daughter is classed as a 'Class J' employee for PRSI purposes. this means that the employer would only need to pay 0.5% Employer's PRSI on the pay given to your daughter.
By law, as Paddy199 noted, your daughter is entitled to a payslip. I'd second his advice to get in touch with Citizens Information Centre
 
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