Taxation of Jobseeker's benefit paid to short term workers?

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willalex

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I always understood that it was not taxable. I have been put on a 3 day week and sign for 3 days.

However I have now received a tax statement for last year saying I owe tax because the Jobseekers benefit is taxable. When I queried same I was told it was because when my employer reduced me working week to 3 days, the fact that I did not work the same 3 days everyweek it was not regarded as short term systematic unemployment and taxable. Is this correct?

Also, is the onus on me or my employer to notify the tax office.
 
JB is taxable and you are responsible for notifying Revenue of your income. Jb has nothing to do with your employer; they would have no way of knowing whether you claimed it or not. If you worked different days each week, you would be treated as a 'casual' worker rather than a 'systematic short-time' worker, wher different calculations in rates of payment apply.
 
Thanks Welfarite,

Just to clarify. I was in full time employment working at least 5 days a week out of seven to make up 40 hours. The roster meant I would work different days/hours each week to make up 40 hours. Basically five 8 hour shifts.

That could not be considered casual employment ?

Due to cut backs and recession I was reduced to 3 days on a temporary basis.

Are you saying that being switched from (a flexible) full 40 hours working week to a part time (flexible) 3 day week makes me a casual employer under that employment.

Note this switch was temporary and when further hours became availble I was restored to full time employment.

And if what you still say stands based on my clarification, if I am put back on a 3 day week, should I insist on set days. Mind you asking for same might see me sent packing for being unflexible.

I could understand what you are saying to be correct if I was taken on as a casual worker, but I was having a full time position reduces due to the economy.
 
Was just reading from citizens Info. and am not sure if this applies to you

Case study: Jobseeker’s Benefit and systematic short time work



  • In this Document
[broken link removed] [broken link removed]

Michael has been working for the same company for over 10 years. The company has run into difficulties and 12 months ago it temporarily reduced the number of days employees work each week from 5 days to 3 days. When this happened Michael went to his Social Welfare Local Office where he was assessed for Jobseeker’s Benefit (JB).
As Michael’s number of days at work had been reduced temporarily from 5 days per week to 3 days per week he was assessed as a systematic short time worker and got two-fifths of the maximum weekly rate of Jobseeker’s Benefit for the two days he was unemployed.
 
Black Sheep said:
Was just reading from citizens Info. and am not sure if this applies to you

Case study: Jobseeker’s Benefit and systematic short time work



  • In this Document
[broken link removed] [broken link removed]

Michael has been working for the same company for over 10 years. The company has run into difficulties and 12 months ago it temporarily reduced the number of days employees work each week from 5 days to 3 days. When this happened Michael went to his Social Welfare Local Office where he was assessed for Jobseeker’s Benefit (JB).
As Michael’s number of days at work had been reduced temporarily from 5 days per week to 3 days per week he was assessed as a systematic short time worker and got two-fifths of the maximum weekly rate of Jobseeker’s Benefit for the two days he was unemployed.
Click to expand...


Black Sheep,

that seems to support my argument.


Benefit received as a result of short term systematic work is NOT taxable.

But would I be classed as a casual worker ? which might make it taxable. I'm still confused
 
The crux of this is that you are classified as a 'casual' worker because the days you work each week are not set the same every week, not a short-time worker. Because of this, your JB is taxable and calculated at a daily rate that is one-sixth of weekly rate.
Short-time employment means employment in which the employees have been transferred from a normal working week to a short-time working
arrangement each week (e.g. 3 days on / 2 days off) or within a period of four consecutive weeks (e.g. 1 week on /1 week off; 2 weeks on /2 weeks​

off; 3 weeks on /1 week off). This is not taxable and paid at a daily rate that is one-fifth of weekly rate.
Regarding the 'classification' issue (i.e. Casual or Short-time worker?), see the section in this link and also this one about 'substantial loss of employment'.
 
Last edited:
Welfarite said:
The crux of this is that you are classified as a 'casual' worker because the days you work each week are not set the same every week, not a short-time worker. Because of this, your JB is taxable and calculated at a daily rate that is one-sixth of weekly rate.
Short-time employment means employment in which the employees have been transferred from a normal working week to a short-time working
arrangement each week (e.g. 3 days on / 2 days off) or within a period of four consecutive weeks (e.g. 1 week on /1 week off; 2 weeks on /2 weeks​

off; 3 weeks on /1 week off). This is not taxable and paid at a daily rate that is one-fifth of weekly rate.
Regarding the 'classification' issue (i.e. Casual or Short-time worker?), see the section in this link and also this one about 'substantial loss of employment'.
Click to expand...

Welfarite,

Thank you. At last some detailed information to read. And it will take me a bit of time to digest.

Can I split it into and further Q&A for you.

Background.

Nature of employment is that trading is 7 days a week with. Opening hours are 10.30 am to 9.30 pm six days with 6pm closing on a Sunday.

So as a full time employee I complete 40 hours a week. To rotate weekends offs, no full time employee works the exact same days every week.

Q 1

By being put on a 3 day week because of economic reasons, Am I an employee transferred from a normal working week to a short-time working
arrangement each week (e.g. 3 days on / 2 days off) or within a period of four consecutive weeks (e.g. 1 week on /1 week off; 2 weeks on /2 weeks

off; 3 weeks on /1 week off) that is not taxable ? as qouted by you. (are there exception for industries with long trading hoour)

Q 2

When working 3 days, I work every second Sunday. Does this then make me a casual worker? (And contradict the above as stated in Q1.)


Q 3.

If so, since I am facing another spell on a 3 day week should I insist on set days?

If so being honest gets you nowhere.
 
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