Employer incentives

 

  1. Employer Job (PRSI) Incentive Scheme
  2. JobsPlus
  3. Revenue Job Assist

 

1.The Employer Job (PRSI) Incentive Scheme exempted employers from liability to pay their share of PRSI for certain employees. The scheme was open to employers who create new and additional jobs.

The Employer Job (PRSI) Incentive Scheme ceased on 30 June 2013 for new participants. A new JobsPlus incentive scheme has replaced the Employer Job (PRSI) Exemption Scheme and Revenue Job Assist from July 2013.

Existing participants on the Revenue Job Assist and Employer Job (PRSI) Exemption Scheme (which both ceased for new participants on 30 June 2013) are not affected by the new JobsPlus scheme.

Rules

To qualify for the Employer Job (PRSI) Incentive Scheme both the job you create and the person you employ must meet certain criteria. While you are waiting to be approved for the scheme, you should operate the standard employee and employer PRSI.

The person you employ must have been getting one of the following social welfare payments for a period of at least 6 months (156 days):

 

You can also employ an eligible person directly from JobBridge or the Work Placement Programme once the required 156 days criteria has been satisfied.

Time spent on Community Employment, Rural Social Schemes,Tús

and FÁS training courses can count towards the 6 month qualifying period provided the person was getting one of the qualifying payments listed above immediately before starting the scheme or course and, before starting work, would qualify for one of the qualifying payments.

In addition, jobseekers payments paid in conjunction with periods of casual employment and breaks in jobseekers payments as a result of periods of illness during which Illness Benefit is paid may also count towards the qualifying period.

The job must:

  • Be a new and additional post/job – employers are not allowed to substitute existing employees to avail of the scheme
  • Be for at least 30 hours per week
  • Last for at least 6 months. If the employment ends within 6 months of getting the exemption, you may be liable to pay the employer’s PRSI contributions for that employee.

Maximum participation rate

You can only get an exemption from employer’s PRSI for a limited number of employees. This limit is 5% of your existing workforce or, for smaller companies, a maximum of 5 new jobs.

How to apply

If you have a new employee and are eligible for the scheme, you should fill in a PRSI 20 form (pdf).

Send the PRSI 20 form with a current tax clearance certificate to the Department of Social Protection – see ‘Where to apply’ below.

Where to apply

Your application for the Employer Job (PRSI) Incentive Scheme should be sent to:

Employer Job (PRSI) Incentive Scheme

Department of Social Protection
Floor 2
Shannon Lodge
Carrick-on-Shannon
Leitrim
Ireland

Locall:1890 927 999
Homepage: http://www.welfare.ie

2.JobsPlus

Introduction

JobsPlus is a new employer incentive which encourages and rewards employers who employ jobseekers on the Live Register. This incentive replaces the Revenue Job Assist and Employer Job (PRSI) Exemption Scheme from 1 July 2013. It is designed to encourage employers and businesses to employ people who have been out of work for long periods. Eligible employers who recruit full-time employees on or after 1 July 2013 may apply for the incentive, which will operate on a pilot basis for a period of 6 months.

The Department of Social Protection will pay the incentive to the employer monthly in arrears over a 2-year period. It will provide 2 levels of regular cash payments:

  • A payment of €7,500 for each person recruited who has been unemployed for more than 12 but less than 24 months
  • A payment of €10,000 for each person recruited who has been unemployed for more than 24 months

Rules

Employers

JobsPlus is available to all employers in the private (including commercial semi-state), community, not-for-profit and voluntary sectors. It is not open to public service employers. Employers can avail of Jobsplus when filling positions that arise as a consequence of natural turnover.

Employers must meet the following conditions:

  • The business must be registered as a PAYE employer with the Revenue Commissioners
  • The employer must be compliant with Irish tax and employment laws. Employers will be asked to give an officer of the Department of Social Protection permission to check your status with the Revenue Commissioners and to obtain a Tax Clearance Certificate using Revenue’s on line service.
  • The employer must offer full-time employment of over 30 hours per week, spanning at least 4 days per week. The eligible employee must be on payroll and subject to PAYE and PRSI.
  • Employers must give details of workforce prior to application, where an increase in the work force is not evident employers will be asked to provide additional information to the Department to support the application.

 

You can find more information for employers in this list of frequently asked questions for JobsPlus employers.

Employees

Eligible employees must:

Be getting Jobseeker’s Benefit (JB) or Jobseeker’s Allowance (JA), or signing on for credits.
And
Be at least 12 months* (312 days) on the Live Register in the previous 18 months to qualify as an eligible employee for the €7,500 incentive
Or
Be at least 24 months* (624 days) on the Live Register in the previous 30 months to qualify as an eligible employee for the higher incentive of €10,000

*Periods spent on certain activation schemes, or time spent in prison may count this time towards the qualifying period once entitlement to one of the qualifying payments outlined above is re-established prior to commencing employment. Jobseekers’ payments paid in conjunction with periods of casual employment may count towards satisfying the qualifying period, as will breaks in jobseekers payments as a result of periods of illness during which Illness Benefit is paid.

People taking part in internships under JobBridge and the Work Placement Programme (WPP) who were getting a qualifying payment prior to their internship may be employed directly from these schemes once the required qualifying period and conditions are satisfied.

Other supports

Family Income Supplement: New employees under the JobsPlus scheme may be entitled to get Family Income Supplement.

Medical card: People who have been unemployed for at least 12 months may keep their medical card for 3 years when they take up new employment.

Rent and Mortgage Interest Supplement: Rent and Mortgage Interest Supplement are not payable where a jobseeker or spouse are in full-time employment (30 hours or more a week). People who are already getting Rent Supplement may be able to keep it, subject to a means test, while they are working full time, as long as they are eligible for housing support under the Rental Accommodation Scheme (RAS).People already getting Mortgage Interest Supplement may be able to keep it while working full time as long as the gross household income does not exceed €317.43 a week.

You can read more information for jobseekers in this list of frequently asked questions for Jobsplus employees.

Rates

If approved, the employer will receive the following payments over a two-year period for each eligible person they recruit and retain in employment:

Eligible person Amount
Has been unemployed for between 12 and 24 months €7,500
Has been unemployed for 24 months or more €10,000

Payment will be made monthly in arrears by Electronic Fund Transfer (EFT) over a 24 month period. It will not be taxable for income or corporation tax purposes.

How to apply

Employers

If an employer decides to recruit an additional employee, they can log on to jobsplus.ie and complete an online application form giving, for example, the name of company, size of workforce, bank details and economic sector of company. Once this is submitted an officer of the Department of Social Protection (DSP) will review and check the tax clearance certificate is in order and email the employer if it is approved.

Once eligibility is confirmed by the DSP an employer may start to recruit, either by contacting their local Intreo centre or employment services office for details of suitably experienced and qualified candidates for their vacancy. They could also register the vacancy with Jobs Ireland.

Candidate employees

Once preliminary interviews have been conducted and candidates have been shortlisted employers should then ask these candidates to log on to jobsplus.ie to check their eligibility for JobsPlus. The DSP will process their request and verify eligibility by posting a two-part JP1 form to the candidate. Part A of the JP1 form will confirm the employee’s eligibility and rate of payment for a prospective employer, Part B is to be completed by the employer if they choose to employ the candidate. The candidate should bring the two-part JP1 form confirming eligibility to the employer for consideration.

When an employer identifies the most suitable candidate for the position, they should complete part B of the JP1 form for that candidate, sign the declaration and return to the DSP. The JP1 form will be processed by the Department and once all conditions are satisfied employers will be notified by e-mail that they have been awarded the incentive with regard to the employee specified on the JP1 form.

 

Once the candidate is offered a position they should contact the DSP to close their jobseeker’s claim. This can be done on line at welfare.ie or by contacting their local Intreo Centre or social welfare office. Payment of JobsPlus can only start once the DSP confirms that the new employee’s jobseeker claim has closed.

Review

If the application is refused the employer can request a review of the decision by a higher officer in the Department of Social Protection.

Where to apply

Employers should apply to register their company at jobsplus.ie.

You can get further information about JobsPlus by logging on to jobsplus.ie, emailing Jobsplusinfo@welfare.ie or calling (071) 9672535/9672583. Information is also available from your local social welfare office or Intreo centre.

Jobs Plus is administered by:

Department of Social Protection

Employment Support Services
Social Welfare Services Office
Government Buildings
Shannon Lodge
Carrick-on-Shannon
Leitrim
Ireland

Tel:(071) 967 2616
Locall:1890 92 79 99
Homepage: http://www.welfare.ie/

 

3.Revenue Job Assist

• Information
• Rules
• Rates
• How to apply
• Where to apply

Information

Revenue Job Assist is an additional tax allowance for people who have been unemployed for 12 months or more and who are now returning to employment. An extra tax allowance can be claimed for each qualifying child (see below). The tax allowance can be claimed for 3 tax years and may begin with either the tax year in which the employment commences or the following tax year. The scheme is an alternative to existing employment schemes and you cannot claim these tax allowances if you are participating in another employment scheme.

Revenue Job Assist ceased on 30 June 2013 for new participants. Since I July 2013 a new JobsPlus incentive scheme has replaced Revenue Job Assist and the Employer Job (PRSI) Exemption Scheme. Existing participants on Revenue Job Assist will not be affected by the new JobsPlus scheme.

Rules

You may qualify for Revenue Job Assist (RJA) if you are unemployed for 12 months or more* and you are:

• Getting Jobseeker's Benefit, Jobseeker's Allowance, One-Parent Family Payment, Disability Allowance, Blind Person's Pension or Invalidity Pension for 12 months or more
• Getting Illness Benefit for 18 months or more
• Released after 12 months or more in prison (time spent in prison is considered equivalent to periods of unemployment)
• Signing for PRSI credits

*Time spent on Community Employment, Job Initiative, Tús, JobBridge, Rural Social Scheme, certain FÁS courses or the Back to Education Allowance (BTEA), provided you were getting one of the qualifying payments listed above immediately before starting BTEA, may count towards the period of unemployment required.

The job you are taking up must:

  • Be for a minimum of 30 hours a week
  • Be capable of lasting at least 12 months.

You can find more details in the explanatory leaflet, Revenue Job Assist IT58 - information for employees.

Revenue Job Assist only applies if you are taking up a job and does not apply if you are becoming self-employed. It can only be set against income from the new job that you have taken up. You can change jobs once and retain the balance of the credit. The tax allowance can be claimed irrespective of your civil status.

Qualifying child

A qualifying child is a child of yours, who is living with you for all or part of the tax year, and who is:

  • Under 18 years of age or
  • Over 18 years and in full-time education or training as an apprentice where the training is for at least 2 years or
  • Incapacitated either physically or mentally, having become so either while undergoing full-time education or while under 21 years of age.

Two people can claim for the same child but only one allowance can be claimed for each qualifying child in any year. If 2 people are entitled to claim for the same child, the allowance is split between them as follows:

  • Where the child is maintained by 1 person only, that person gets the allowance
  • Where the child is maintained jointly by 1 or more people, the credit is split either in the same proportion as they each maintain the child or in a manner they jointly decide on.

Keeping secondary benefits

In addition to the special tax allowance, under Revenue Job Assist, you can keep your medical card for 3 years from the date of return to work. You can also retain other secondary benefits, such as Fuel Allowance, for 3 years, provided your weekly income is less than €317.43. However the amount of Rent Supplement or Mortgage Interest Supplement you get may be reduced.

Employer’s tax deduction

Employers who employ people who qualify for Revenue Job Assist can make a double deduction of the employee's wages from their company's taxable income for up to 3 years provided that the employee remains with them. This means that double the amount of the wages of a qualifying employee and double the amount of the employer’s PRSI contribution for that employee can be deducted by the employer from the company’s taxable income.

Example:
An employee who started work in January 2011 is paid €350 a week, (€18,200 a year) and qualifies for Revenue Job Assist. If that employee continues to work for the employer until the end of 2013, the employer can reduce his taxable income by double the amount of the employee’s wages and double the amount of employer’s PRSI as follows:

Deduction Amount
Employee’s annual wages = €18,200 x 2 €36,400
Employer’s annual PRSI 2011 = €1,547 x 2 €3,094
Total annual tax deduction 2011 €39,494

So in 2011 under Revenue Job Assist the company’s taxable income may be reduced by €39,494. In 2012 and 2013 it may be reduced by €37,947 each year. This would come to a total tax deduction of €115,388.

Employer's PRSI exemption: If you take on extra employees under the Revenue Job Assist scheme in 2012, you may qualify for the Employer Job (PRSI) Incentive Scheme for up to 18 months.

Rates

The Revenue Job Assist allowances are at your highest rate of tax and appear as an increase to your tax credits as follows:

Year One: extra allowance of €3,810 and €1,270 for each qualifying child
Year Two reducing to two-thirds of this amount, that is, €2,540 and €850 for each child
Year Three one-third of amount allowed in year one, that is, €1,270 and €425 for each child

How to apply

You can start to claim the tax allowances either in the tax year you take the job or in the following tax year.

You apply by completing Part 1 of form RJA (pdf). This form is also available from your local tax office. Part 2 of the form must completed by your employer and the completed form should be sent to your local tax office.

Where to apply

Contact your local tax office.