Introduction
Irish employers should consider a variety of issues, including
tax, social security, immigration and employment law implications,
before agreeing to an employee's request to work from home when
'home' is not in Ireland. We consider each of these areas
before explaining what practical steps you can take to minimise the
risks.
Tax and social security implications
If an employee is only working overseas temporarily, the Irish
employer should continue to deduct income tax under the PAYE
system. Matters start to become more complicated where a stay
becomes extended, or even indefinite Employers should always bear
in mind the figure of 183 days in a country in a 12-month period:
this is generally the tipping point for tax residency, often
together with employer obligations to operate withholding tax.
