Dáil Éireann Debate, Tuesday - 22 September 2015
332. Deputy Jonathan O'Brien asked the Minister for Finance the tax liability of those on community employment schemes; and if the rates paid to persons on the CE schemes for adult dependants, and child dependants, are liable to be taxed, whether for PRSI, USC, or any other forms of taxation. [31270/15]
View answerI am advised by the Revenue Commissioners that all Community Employment payments to participants, including those with adult and child dependents, are assessable for Income Tax (PAYE) purposes. The actual amount payable by any individual will depend on her/his Tax Credits and Standard Rate Cut-Off Point.
Community Employment participants pay PRSI at Class A8/A9 which counts as a full Class A contribution. If the Community Employment payment is less than €352 per week an employee contribution does not need to be paid. If the Community Employment payment is greater than €352 a week, the employee PRSI contribution is 4%.
Payments made to participants on a Community Employment Scheme are treated as social welfare payments and are therefore exempt from USC under section 531AM of the Taxes Consolidation Act 1997.
