Are you an Employer thinking of taking on Employees?
If the answer is YES, then you may be able to claim extra tax deductions. Revenue Job Assist allows employers a double wages deduction* in their accounts, if they employ a person who has been unemployed for 12 months or more.
*The double wages deduction may last for 3 years and applies to:
- Wages paid to a qualifying employee in a qualifying employment and
- Employer’s PRSI contributions paid in respect of such wages
Double Wages deduction
The double wages deduction is an additional deduction in calculating your taxable income for the year of assessment or accounting period.
It can last for a period of up to three years from the date the employment commences, provided the employee is still employed by you. There is no limit to the number of ‘qualifying employees’ you can take on under the scheme, provided they take up ‘qualifying jobs’.
The deduction is not due if either you or the employee has benefited or is benefiting under any other employment scheme in respect of the job.
Employer Job (PRSI) Incentive scheme
The Employer Job Incentive Scheme exempts employers from liability to pay their share of PRSI for certain employees for 12 months. Details of this scheme are available from the Department of Social Protection at:http://www.welfare.ie/EN/Schemes/JobseekerSupports/BackToWork/RevenueJobAssist/Pages/rja.aspx
or LoCall 1890 66 22 44.
Which jobs does Revenue Job Assist apply to?
It applies to jobs which
- Are for a minimum of 30 hours per week
- Are capable of lasting at least 12 months.
It does not apply to jobs that are
- Primarily commission based (i.e. over 75% of earnings derived from commission)
- Already grant aided by other agencies (statutory or otherwise) or supported under existing schemes such as the ‘Back To Work Allowance Scheme’ administered by the Department of Social Protection.
- As a result of the previous holder being unfairly dismissed
- Taken up by the proprietary director of the company or the spouse of such a director
- In an employment where the employer requires no workforce.
You will not qualify for Revenue Job Assist for an employment, if any of your employees were made redundant in the 26 weeks prior to the date of commencement of the new employment
However, the genuine replacement of an existing employee will qualify (e.g. replacing an employee who retires or voluntarily leaves the employment).
Unlike other employment schemes there does not have to be an increase in your workforce to qualify for Revenue Job Assist.
Qualifying jobs may be notified to your local FÁS Placement Service Office, which will assist you in finding suitable employees.
Which employees can qualify?
To qualify you must employ a person who has been unemployed for the 12 months immediately prior to the commencement of the employment, (from 1 January 2010, up to 15 days of incidental employment in the 12 months prior to commencement of the employment, will not be counted) and during that time was in receipt of one of the following payments:
- Jobseeker’s Benefit
- Jobseeker’s Assistance
- One-Parent Family Payment
- Blind Person’s Pension
- Disability Allowance
and also with effect from 1 January 2006
- Illness Benefit – where the person has been in receipt of the payments for a continuous period of at least three years
- Invalidity Pensions – where the person has been in receipt of the payments for a continuous period of at least one year
Time spent on:
- Certain FÁS training courses
- The Community Employment Scheme
- The Job Initiative programme
- The ‘Workplace’ five week job experience programme
- The Back to Education Scheme administered by the Department of Social Protection
also qualify as periods of unemployment for the purposes of Revenue Job Assist, provided the participant was in receipt of one of the payments listed above immediately prior to participating in the course or scheme.
With effect from 1 January 2006, for individuals released from prison, the periods spent in prison are deemed equivalent to periods of unemployment.
How does Revenue Job Assist work?
Complete Application Form RJA1 – (PDF, 338KB) which enables an employee claim the additional tax credits.
- Part 1 of this form must be completed by the employee
- Part 2 of this form must be completed by you, as the employer, to certify that the job qualifies as outlined in the application form
Having completed Part 2, you should keep a copy of it for your own records to assist you in preparing your accounts
The completed form should be handed back to the employee who should then send it to his/her Regional Revenue Office
You can assume, unless you are notified to the contrary by Revenue, that you can claim the double deduction in respect of wages paid to the employee and the employer’s PRSI contributions.
Employees will also benefit from additional tax allowances, details of which are set out in Leaflet IT58 – Revenue Job Assist – Information for Employees (PDF, 537KB) available from our website or from our Forms and Leaflets LoCall service 1890 306 706 ( if calling outside the Republic of Ireland +353 1 702 3050).
Further Employer Information
You can get further information by contacting the Employers LoCall HelpLine on 1890 25 45 65