If you’re an umbrella company contractor, or a limited company director who receives a salary, any taxes you owe on your salary will be collected via PAYE. All employers are responsible for calculating, and collecting taxes owed on their employees’ earnings.
This is a perfect option if you:
- Do not want to contract long term (less than a year)
- Earn less than €300 per day
- Do not want the hassle of setting up a LTD company
- Do not want the hassle of having a LTD company
- Have an existing PRSA in place
Umbrella company contractors receive payslips for each period they work (typically weekly or monthly), and need take no further action, as umbrella schemes take care of the entire payroll administration.
At the end of each tax year each employee must be given details their total earnings (salary) over the previous tax year, minus any deductions.