Gerry Reynolds
Question:152 Mr. G. Reynolds asked the Minister for Finance the tax benefits and incentives, if any, available for persons unemployed for over 12 months to return to full-time employment. [8168/98]
Written Answers. - Employment Incentive Scheme.
Section 16 of this year's Finance Act introduced an employment incentive scheme to encourage the long-term unemployed to take up employment and gives an incentive to employers to employ such individuals. This is a two part initiative which is now titled job assist. It will come into effect on 6 April 1998 and will apply to long-term unemployed individuals who take up a qualifying employment.
The first part of the initiative provides a special tax deduction for the employee. This will be an additional tapering personal tax free allowance and an allowance for each qualifying child for a three year period as follows.
|
Personal Allowance£ |
Child Allowance£ |
|
|
Year 1 |
3,000 |
1,000 |
|
Year 2 |
2,000 |
666 |
|
Year 3 |
1,000 |
334 |
To benefit under the scheme an individual must have been unemployed for at least 12 months and be in receipt of unemployment benefit, unemployed assistance or one-parent family allowance.
Time spent on certain FÁS schemes or back to education schemes administered by the Department of Social Community and Family Affairs qualify as period of unemployment provided the individual has been in receipt of unemployment benefit, unemployment assistance or one-parent family allowance immediately prior to commencing the training.
A qualifying employment under the scheme is one where the employment commences on or after the 6 April 1998; is for a minimum of 30 hours; and is capable of lasting at least 12 months.
The second part of the initiative is a double tax deduction for employers who employ the long-term unemployed person. The double deduction will cover wages and employer's PRSI contributions and can last up to 36 months provided the previously long-term unemployed person is still employed by them.
The conditions governing job assist are largely drawn from the various conditions that apply to the existing employment schemes such as the back to work allowance and Jobstart.