Thursday, June 16, 2005

No Tax deduction for Student jobs, says Government

Employers taking on students on holiday jobs have been reminded by the Gibraltar Government that following last year’s budget, such students are not liable to pay social insurance contributions or income tax on the income received from such employment.

A Convent Place spokesman said employers should therefore “not deduct PAYE or social insurance from the holiday job pay of such students.” The Convent Place spokesman said:

“This applies to any student in full time education undertaking employment while on vacation from school, college, university or other educational establishment. There is no need to notify the vacancy or register the student employee with the Employment Service or to obtain a PAYE Allowance Certificate from the Income Tax Office.

Furthermore, provided that, at the start of the employment, the employer writes to the Department of Social Security providing it with the name and period of employment of the student, the student will be held covered by the Employment Injuries Fund in the event of any employment injury.”

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