Implications of employment status
| How employment status affects | Employees | Self-employed |
|---|---|---|
| PRSI contributions: Different contributions are made, which impacts social welfare entitlements | Generally pay Class A PRSI, with the employer also making contributions Entitled to a number of social welfare benefits, for example, unemployment and disability benefits | Generally pay Class S PRSI. Entitled to a smaller range of social welfare benefits |
| Tax treatment: Determines tax payment methods | Pays tax under the Pay as You Earn (PAYE) system | Pays tax under self-assessment and files tax returns to Revenue |
| Employment rights: Certain rights apply to employees only | Extensive statutory rights – minimum wage, work breaks, rest periods, holidays, redundancy rights | Not entitled to as many statutory rights |
| Public liability: Being responsible for any harm or damage caused to the public by work carried out | Employer's public liability insurance usually covers any accidents or damages | Need to have their own public liability insurance to cover any accidents or damages |
| How employment status affects | Employees | Self-employed |
|---|---|---|
| Generally pay Class A | Generally pay Class S | |
| Pays tax under the Pay as You Earn ( | Pays tax under self-assessment and files tax returns to Revenue | |
| Extensive statutory rights – minimum wage, work breaks, rest periods, holidays, redundancy rights | Not entitled to as many statutory rights | |
| Employer's public liability insurance usually covers any accidents or damages | Need to have their own public liability insurance to cover any accidents or damages |
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