A Concise Guide - Employed Versus Self Employed

Important Notice for University Of Galway Budget Holders planning to engage the services of an Individual

Before engaging the services of any individual *, it is important that budget-holders understand the differences between an employee and self-employed individual. The definition of both comes back to the nature of the engagement rather than the usual status of the individual/business being engaged.

In other words, the nature of an individual’s work for the University of Galway is such that it would be more appropriate for the person (that may normally be self-employed) to be treated as an employee (with any claims taxed at source through the payroll system) rather than self-employed.

This Employee vs self employed one page checklist is a very helpful tool for budget-holders in deciding if an engagement is more akin to a contract of service (employment) or for service (self-employed).

If, after reviewing the checklist, and before engaging the individual, the budget-holder believes the engagement to be one of:

• employment, (s)he should contact the HR office.
• self-employment, (s)he should contact the Accounts Payable Office (sub-office of the Accounts Office)

The following are some good examples to indicate an engagement being one of employment in University of Galway. The individual:

1. would have a University of Galway email address, telephone extension, desk/office
2. will be paid for working with a PI on a research project (e.g. collecting, collating, presenting data)
3. will be providing teaching, training, workshops, tutorials for University of Galway students as part of their academic programmes (these claimants should use the PTTA forms here)
4. will be doing administration work for a unit
5. will be providing back-up services under the direction of an employee of University of Galway

In summary, budget-holders are asked to review the one-page checklist and to seek any clarifications/advice necessary before engaging the services of an individual.

  * An individual also includes instances where a person trades under a business name. For example, P. Murphy providing lecturing services to an evening B.Comm. class and invoicing as P. Murphy Financial Services would not be acceptable as the nature of the service is such that the claim should be processed through the payroll system with PAYE/PRSI deducted at source.