Go contracting or not?

Killergreene

Augeo wrote: »

To flesh this out............. there's a project and a contractor is required. Budget is approx €80k.

It is decided that the weekly hours will be capped at 39 and an agency or three are contacted........... rate is €40/hour for 39 hrs/week.

Contractor takes that they'll invoice €40 (rate) x39 (hrs) x 46 (weeks worked after taking the 10 Bank Hols unpaid & 20 days unpaid annual leave) = €72k approx + VAT

Agency gets 10% so that's the €80k done and dusted.#

Now you are suggesting that they'll (the agency) give a PAYE worker a €72k/annum salary. (you actually are suggesting €40/hr worked which is more lunacy again as I'll show you below)

1. The agency still needs their margin (they aren't philanthropists) so who picks up the employer PRSI bill ?

Not to mention you are suggesting actually paying them hourly, so what happens when there's a BH or they take the week off? STAFF get holiday pay, 2. who pays for the 170 ish holiday hours and the 10 bank holidays there are ENTITLED to be paid if you've handed them €40/hour for every hour worked?

1. The agency have to pay employer's PRSI. If they are paying you as a PAYE employee, they are legally obliged to pay employer's PRSI.

2. The agency pays for them.

Have you heard of the Protection of Employees (Temporary Agency Work) Act 2012

Employment and working conditions
Since 16 May 2012 temporary agency workers covered by the Act have the right to the same basic employment conditions as if they had been directly employed by the hirer under a contract of employment. The right to equal pay has retrospective effect to 5 December 2011. These employment and working conditions are as follows:

Working time

This includes the duration of working time, rest periods, breaks, night work, annual leave and public holidays

Pay

This is defined as basic pay, shift premium, piece work, overtime, unsocial hours worked, and Sunday work. The definition of pay in the Act does not include occupational pension schemes, sick pay, bonuses, maternity pay or benefit in kind. The right to equal pay is backdated to 5 December 2011.


Or how about The Organisation of Working Time Act 1997

...provides for a basic annual paid leave entitlement of 4 weeks

In the case of agency employees, the party who pays the wages (employment agency or client company) is the employer for the purposes of the Act and is responsible for providing the entitlement.

So if you are an agency worker.....being paid PAYE.....the agency have to pick up the tab for all of the above.


Are you still confused or still intentionally misleading people??Which is it?

Indeed..... the agency will pay the employers PRSI & holiday pay but won't pay the salary you think they will.

Budget of €80k..... look at the example I showed.

Now do you reckon they can PAYE you 40/hour? Please do think about this

72k + employers prsi + holiday pay + agency margin = far more than the 80k client budget.

If you think otherwise show us the figures.... remember 80k budget for the year... client needs a contractor & agency need 10%.... it works for 40/hour one man show contractor.... show us how it looks for what you think happens the PAYE way.

I need a laugh.

BTW bud.... I've mentioned the entitlements.... I've just repeatedly pointed out the salary you mention cannot happen