The transition year focuses on many non-academic subjects and the school engages the services of external personnel to teach the modules such as First Aid, cooking, self-defense, driving and computer skills. A lot of sport goes on, with many different types including: rock-climbing, hill-walking, horse-riding, kayaking and orienteering.
The school must determine the person’s employment status that is whether they are employed or self-employed, is not a matter of choice. Whether someone is employed or self-employed depends upon the terms and conditions of the relevant engagement. See Payroll procedures for further information. The correct classification of a person employment status will ensure that the school will be not be penalised by the Revenue.
Personnel classified as a self -employed person or company will invoice the school for the services and the school will make the payment based on the invoice received e.g. (The Rosemary Smyth Driving Academy).
Individuals classed as employees of the school must be processed through the school’s payroll system using the following criteria.
PAYE
The employer must notify the Revenue of each new employee to the payroll on the Revenue On-Line Service (ROS). ROS enables employers to electronically receive and download employer copy Tax credit certificates. The Revenue will forward TAX Credit details to the school on ROS within 24 hours. The school must import the Tax Credit details to the Payroll system. The Payroll system will calculate the correct TAX. If you have not received a Tax Credit Certificate for an Employee your must apply Emergency Tax.
The Tax Credits details received from Revenue will also give details on the correct USC rate to apply. The Payroll system will calculate the correct USC to deduct.If a person reaches 70 years at any stage during the year they will benefit from the maximum 4% rate for the whole year.If you have not received a Tax Credit Certificate for an Employee your must apply the Emergency USC rate of 8%.
The USC charge will not apply to Maternity Benefit.
The Teachers PRSI class will be determined by the date the teacher commenced teaching. Teachers who commenced teaching before the 6th April, 1995 will pay PRSI at the D Class and for all income earned in the school will be subject to PRSI at the J Rate.
Teachers who commenced after the 6th April 1995 will pay PRSI at the A Class and all sublimentary income earned in the school will be at the Class a rate.
The Payroll computer system will calculate the correct PRSI once the correct PRSI Class is entered for each employee
PRSI is fully chargeable on payments by private sector employees in respect of:
- Superannuation contributions
- Permanent health benefit schemes (including income continuance schemes)
- Revenue approved schemes established under irrevocable trusts, overseas pension schemes
- and other Revenue exempt approved schemes
- Personal Retirement Savings Accounts
- Deductions in respect of Revenue approved retirement funds
ASC (Additional Superannuation Contribution)
This new contribution will be in addition to the existing superannuation contribution made by public servants currently and will apply to pensionable remuneration only.
Under the new pension arrangements non-pensionable income such as supervision & substitution, selection committee payments, State Examination remuneration paid by the school, payments to teachers for privately paid hours, un-rostered overtime, etc. will be exempt from ASC.
The rates and thresholds for the PRD effective from the 1st of January 2019 are as follows:
Public Servants who are Members of pre-2013 Pension Schemes with Standard Accrual Terms |
| Amount of Remuneration / Threshold | Rate of Deduction |
| Up to €32,000 | Exempt |
| Greater than €32,000 but not over €60,000 | 10% |
| Greater than €60,000 | 10.5% |
Public Servants who are Members of Single Service Pension Scheme |
| Amount of Remuneration / Threshold | Rate of Deduction |
| Up to €32,000 | Exempt |
| Greater than €32,000 but not over €60,000 | 6.66% |
| Greater than €60,000 | 7% |
It is the responsibility of public service employers to ensure that the correct rate of PRD is deducted from employees
The majority of teaching staff will be liable to PRD at the 10% or 10.5%.
PRD
All employees must complete the PRD10 Form. Please retain the completed forms on file.
PRD is deducted from payments made out of State funds to any person who is a member of a public service pension scheme, is entitled to a benefit under such a scheme or receives a payment in lieu of membership of such a scheme
Payments from Public Funds: Where a person, who is liable to pay the pension levy (PRD) in respect of his/her regular employment, he/she is also subject to the PRD deduction in respect of such payments (e.g. Supervision and Substitution, State Examinations work).
Privately Sourced Funds: Where a person, who is liable to pay the pension levy (PRD) in respect of his/her regular employment, receives separate payments for different duties out of
privately sourced funds, he/she is not subject to the deduction in respect of such payments (e.g. after school study payments, coaching, etc.
Fee Paying Schools: Privately paid teachers who are not in the public sector pension scheme are not liable for PRD where payments are made entirely out of privately sourced funds (e.g. fees in fee charging schools).
Bands and Rates
The rates and thresholds for the PRD effective from the 1st of January 2016 are as follows:
| Amount of Remuneration / Threshold | Rate of Deduction |
| Up to €28,750 | Exempt |
| Greater than €28,750 but not over €60,000 | 10% |
| Greater than €60,000 | 10.5% |
It is the responsibility of public service employers to ensure that the correct rate of PRD is deducted from employees
The majority of teaching staff will be liable to PRD at the 10% or 10.5%
Holiday Entitlements
What to include when calculating an entitlement to Holidays:
In calculating how many days’ holidays to which an employee may be entitled, employers should include all hours worked including time spent on statutory maternity or adoptive leave during the school year and public holidays taken during the calculation period. Christmas and Easter leave periods should also be included if employment of the teacher does not cease during these periods.
Pay in respect of holidays to part-time teachers should be made prior to the cessation of employment at the end of the school year. The calculation of holiday pay is determined by reference to the part-time rate which the Department issues to Boards of Management by Circular Letter from time to time.
In the leave year, a part-time teacher’s holiday entitlements should be calculated as follows:
8% of the hours a part-time teacher works in the period 1st September xxx to 31st August xxxx (but subject to a maximum of 4 working weeks).
Public/Bank Holiday
A regular part-time teacher is entitled to be paid for a public holiday.
Part-time employees must have worked at least 40 hours in the 5 weeks ending on the day before a public holiday to qualify for public holiday benefit.
There are nine public holidays as follows:
Christmas Day
St. Stephen’s Day
The 1st of January
St. Patrick’s Day
Easter Monday
The first Monday in May
The first Monday in June
The first Monday in August
The last Monday in October
Note: Good Friday is not a public holiday. While some schools and businesses close on that day, you have no automatic entitlement to time off work on that day.
Part-time teachers who are not normally required to work on a public holiday will be entitled to one fifth of the sum paid in respect of the normal weekly hours worked by the part-time teacher before that public holiday.
If the part-time teacher ceases to be employed during the week ending on the day before a public holiday, having worked during the 4 weeks preceding that week, s/he is entitled to receive pay for the public holiday.
In the event that a part-time teacher is required to work on a public holiday s/he will be entitled to a day’s pay for the public holiday.