Jobplus – The New Employer Incentive Scheme
You may be aware of a new employer incentive scheme called Jobplus being offered by the Department of Social Protection in the past few weeks, especially as Minister Joan Burton has been actively publicising Jobplus on various media platforms.
So what is Jobplus?
Jobplus was launched on 1st July 2013 and is the latest incentive scheme offered to employers to assist the government removing the long term unemployed from the live register. This incentive replaces the Job Assist and Employer Job (PRSI) Exemption Schemes. Jobplus is currently being launched on a pilot basis for a period of 6 months, starting on 1st July 2013.
How does Jobplus work?
Employers who offer employment to those who have been long term unemployed, as outlined below, will receive a monthly payment over a two year period to assist with the cost of employing that individual. The payments are structured as follows:
- €7,500 per annum for employing an individual who has been unemployed over 12 months but less than 24 months.
- €10,000 per annum for employing an individual who has been unemployed over 24 months.
The amounts received under the Jobplus scheme are not considered as revenue for Income or Corporation Tax purposes and should be reflected as a deduction against your wage cost.
How will the payments be made?
The payments will be made to the employer on a monthly basis by Electronic Fund Transfer (EFT) for a period of two years. Payment is not available in any other format. The employer will receive monthly remittance slips which provide details of the amounts being received by the employer for each of the employees under the scheme.
What Rules apply to JobPlus?
Jobplus is available to all non-public service employers. Before an employer can apply to the scheme they must meet the following criteria:
- The employer must be registered with The Revenue Commissioners for PAYE
- The employer must be compliant with both tax and company law. The Department of Social Protection will verify your Tax Clearance Certificate and your status with The Revenue Commissioners
- The employer must offer full time employment of over 30 hours per week, across 4 days per week.
- The employees employed under the scheme must be included on the payroll and be subject to PAYE/PRSI
- You must provide details of the workforce prior to the application
The last measure outlined above is to prevent employers displacing existing employees in favour of employees who are eligible under the scheme. If the Department of Social Protection do not see an increase in the number of employees they will investigate further and you may be withdrawn from the scheme.
How do you apply for Jobplus?
The application process is relatively easy. You simply log on to www.Jobsplus.ie and complete the online application. This application will require the following information:
- Name of the employer (Company/Partnership/Sole Trader, etc…)
- Size of the current workforce
- Bank account details
- The economic sector in which you operate
- Request your permission for The Department of Social Protection to verify your Tax Clearance Certificate online
Once the above has been approved you will receive an email from The Department of Social Protection advising you of same.
What is the next step after approval?
Once you have received confirmation that you qualify as an employer under Jobplus, your next step will be to find your new qualifying employee. You can do this by contacting your local Intreo Centre or Employment Services for details of suitably experienced and qualified candidates.
The Intreo Centre is a new service offered by The Department of Social Protection and is a single point of contact for all employment and income supports.
Alternatively you can advertise your job on Jobplus.ie or Jobs Ireland.
Who qualifies as an eligible employee under Jobplus?
An eligible employee will:
- Be in receipt of jobseekers benefit, jobseekers assistance or signing on for credits
- Be on the live register for at least 12 months (312 days) in the previous 18 months to qualify for €7,500 incentive
- Be on the live register for at least 24 months (624 days) in the previous 30 months to qualify for the €10,000 incentive.
Close family members of the employers are not eligible for the scheme.
It has also been noted under the scheme that those holding a medical card may retain the card for 3 years after taking up the new employment.
What documentation is required for Jobplus?
Once a job has been offered the potential employee should apply to The Department of Social Protection to confirm their eligibility. The employee will receive a two part JP1 Form. Part A of this form will confirm the eligibility of the employee and the rate of payment to be made to the prospective employer
Part B is to be completed by the employer, if they wish to employ the candidate.
If for some reason the employment ceases then it is the responsibility of the employer to notify The Department of Social Protection, in order that the payments may be stopped.
Are you an eligible employer looking to expand your workforce?
So are you a employer who is looking to expand your workforce? Do you think you would qualify under this new Jobplus incentive scheme being offered by The Department of Social Protection?
If you are looking to expand your workforce and would like assistance with any of the steps outlined above please do not hesitate to contact us as we are very experienced in all aspects of employment taxation.
Aileen O’Neill BBS ACCA
Aileen O’Neill joined the firm in 2002, obtained her membership to ACCA in 2007 and was appointed Manager in 2007. Aileen’s area of expertise is in the provision of audit and assurance services to small to medium sized companies and owner-managed business in all sectors. She brings over 10 years experience in planning and executing audit assignments and has particular experience in the preparation and analysis of financial statements and reporting recommendations.