Construction industry

Are you self employed or an employee?

It is important that your status as a worker is correct and that you are taxed accordingly.

If you are self-employed, you will be engaged under a relevant contract and are responsible for the payment of your own:

• Income Tax
• Universal Social Charge (USC). 
• and
• Pay Related Social Insurance (PRSI)

If you are an employee, you will work under your contract of employment. Your employer is responsible for the collection and payment of your:

• Income Tax
• USC
• and
• PRSI 

How do you decide your employment status?

The Supreme Court judgment in the Karshan case outlines five questions to help determine your status as a worker for taxation purposes

The five-step decision-making framework involves the following questions:

1. Does the contract involve the exchange of a wage or other remuneration for work?
2. Has the worker agreed to provide their services personally and can they sub-contract their work?
3. Does the business control what, how, when and, or where the work is done?
4. What do the facts and circumstances say about the true nature of the relationship between the business and the worker?
5. Is there any legislation that would change the answers to any of the above questions?

For further information, please see Determining the employment status of an individual. The Tax and Duty Manual Part 05-01-30 explains the decision-making framework in more detail.

What do you do after you determine your status?

If you are self-employed, you must:

• register for all appropriate taxes, if you have not already done so
• pay preliminary tax
• and 
• file an Income Tax Return.

If you are an employee, your employer will deduct Pay as You Earn (PAYE), PRSI and USC from your pay.

Note

If you are self-employed, or an employee, you may be entitled to benefits from the Department of Social Protection (DSP).

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