Part-time employment - spread wages over several weeks to avoid PRSI threshold?

T

TTI

Registered User
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Hi,

My understanding is that PAYE and USC taxes are balanced on an annual basis with regards to thresholds. I believe that PRSI operates on a weekly basis only with no opportunity to rebalance? I.E. Subclass AL for some weeks but no wages for other weeks so on an annual basis would be in class A0. Is this correct?

My main question is that if I do some part-time work for a company as a PAYE employee, let's say 800 euro, is it acceptable (legal) to spread those payments over several weeks to be below the 38 euro/week band?
 
IIRC, its the 'income arising' thats taxable, and not the 'paid income' i.e. you should be taxed according to date its earned and payable, even if not paid. Generally not ever really an issue - except in instances like this. (Although impossible to police in small companies)

(I stand to be corrected on the above)
 
It shouldn't be done, but in practice it is impossible to police really.
 
Time said:
It shouldn't be done, but in practice it is impossible to police really.
Click to expand...

Yes, though in particular with trying to stay below the 38 euro/week it may draw attention... that would be ~4 hours / half a day a week at minimum wage.

Although the fact that I would be also drawing a salary as a director and pay taxes on that, perhaps not that much of a problem?
 

Really, if I was the employer I'd be very concerned if I was asked to facilitate this - it is a fraud at the end of the day. The risk/reward doesn't stack up, for the sake of saving a few quid in employers PRSI.
 
True, I was thinking twice about it a few minutes after I posted it...

Thanks for the clarification on the 'income arising'.
 
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