I'm not missing anything. You seem to think employers are a disconnected entity oblivious and unconnected with pay levels. The more employers PRSI an employer has to pay, the less they have available to pay employees.You keep missing the point that employees don't pay employer's PRSI - their employers do.
From the government's point of view, for a particular person at a particular income level, they get less revenue in total from that person working if they are self-employed than if they are employed.
amgd I don't understand your post. If you are paid a salary under PAYE then you are not self employed. Also this 3% surcharge is not new.
On a like for like basis, yes I would be pretty sure - the person will still be doing the same job, charging VAT, contributing to profit etc.Are you really sure that is the case? It might be true of income tax ... but its certainly very debatable once VAT & other business taxes are taken into account.
Who said employers PRSI is paid by the employee? It is paid in respect of an employee not by an employee. But it is still money that the government gets as a result of the employed person's employment.if you accept the fallacious argument that employer's PRSI is paid by the employee
Comment is fair as in the absence of this liability on the employer he/she/it would have capacity to pay the employee a higher gross salary.Who said employers PRSI is paid by the employee? It is paid in respect of an employee not by an employee. But it is still money that the government gets as a result of the employed person's employment.
Whatever about the different rates of prsi for employees and self employed, once self employed can get sick pay, jobseekers benefit, etc, only then can we have a fair comparison numbers wise.
No they don't. The contributory pension is by far the most costly benefit provided - probably 65% of the cost of providing all PRSI-covered benefits (5.3B of 8.3B) - and that's current cost - accruing costs will be much higher for the contributory pension.Good point. The self-employed have much lower entitlements than employees.
I assume that this thread should read "Why do the self-employed pay higher USC?"
Do they pay higher income tax than employees?
Whatever about the different rates of prsi for employees and self employed, once self employed can get sick pay, jobseekers benefit, etc, only then can we have a fair comparison numbers wise.
It takes a brave person to start a business .
Hey. Just wondering why there hasn't been more of a backlash about the self-employed being hit with an 11% USC over 100,000, while employees are at 8%. I don't see the logic.
Unless I'm not seeing the wood from the tress here, isn't that ultra blatant discrimination - and even anti-small business?
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