Being an employer

Overview What is an employer? Rights and responsibilities of employers Reasons for keeping records Procedure for hiring staff Methods of calculating wages Methods of paying wages Employment terms

What is an employer? A person or firm who pays people to do work for them.

Rights of Employers To set up a business and employ suitable staff. To decide on the aims and objectives of the business. To dismisss dishonest staff.

Responsibilities of Employers Provide safe & healthy work conditions. Pay agreed wages for work done. Obey employment laws. Keep records of PAYE & PRSI deducted.

Reasons for keeping employee records If employee is o seeking promotion o Claiming unfair dismissal o Being made redundant o Revenue commissioners- (PAYE/PRSI)

Procedure for employing staff.

1. Job Description Duties. Qualifications needed. Personality needed. Pay & hours.

2. Recruitment Find out what staff you need. Advertise the job.

Job Advertisement needs to have: Name of the employer Position to be filled Qualifications and experience of the candidate How to apply Closing date State company is an equal opportunities employer.

3. Examine CV’s (curriculum vitae) & Application Forms Look at all the replies to the advertisement.

Information given on CV Personal Details: Name, age etc….. Educational achievements Work experience Hobbies/interests/achievements Name of referees

4. Shortlist Call the best candidates for interview.

5. Interview & Select Face to face meeting to decide if the candidate is suitable.

6. Probationary Period A trial period to see if the new employee is suitable.

7. Contract of Employment Sets out the; Terms of employment. Rates of pay. Duties. Starting date.

Methods of calculating wages

1. Time Rate Paid by the hour. Clock in & clock out.

2. Piece Rate Paid for the amount of items produced or work done.

3. Commission Basic wage plus a percentage of sales.

Methods of paying wages

1. Cash Quick. Convenient. Unsafe.

2. Cheque Record of payment. Slow: must change into cash. Reduce impulse buying.

3. Paypath Wages is paid directly into your bank account. Quick, safe. Reduces impulse buying.

4. Benefit in kind Non money income. Eg. Company car or mobile phone Susidised meals……….

Total cost of employing staff Gross Wage + Employers share of PRSI

Government uses PAYE to Pay wages of teachers, doctors, nurses Improve roads, hospitals, schools Provide Public Utilities: libraries, dumps

Government use PRSI to Pay social welfare payments such as, Job seekers allowance, Old Age Pesion Maternity Benefit or Sickness Benefit, Family Income Supplement (FIS)

Gross Pay- Wages before deductions Net Pay- Wages after deductions

Standard Rate of Tax Is the lower rate of tax Standard Rate Cut-off point Is the amount that you can earn before you pay the high rate of tax.

Tax Credit Is the amount that is subtracted from the tax you have to pay. It reduces the amount of tax you have to pay.

Statutory Deductions  Deductions that must be made  PAYE  PRSI

Non Statutory (Voluntary)Deductions Health insurance= VHI, BUPA/VIVAS Private pension Trade union fees Savings scheme

Salary v Wage Salary- means an employee is paid a certain amount of money per year. Wages- employee is paid per hour.

Terms  Basic Pay- payment for normal working  Overtime- additional pay at a higher rate per hour for working in excess of normal working hours

Terms Bonus – Extra money added to wages for achieving certain targets Benefit-in-kind – Non money income. Eg. company car, subsidised canteen Subsidised – company pays some of the cost of meals etc.

Terms Flexi-time- One can with the consent of ones employer work the required hours at any time within limits during the week. Equal Opportunities Employer- Employer does not discriminate on the grounds of: gender, race, colour, religion and age.

Recap What is an employer? Rights and responsibilities of employers Reasons for keeping records Procedure for hiring staff Methods of calculating wages Methods of paying wages Employment terms