What are the differences between Part-Time and Full-Time Employees on Buddy?
Part-time and full-time employees share more similarities than differences. They are entitled to all the same entitlements, such as vacation leave, sick leave and government bonuses.
The main differences for part-timers are that:
- They are not eligible for Overtime Tax at 15% (FSS OT)
- They can be set as Variable Hours (non-fixed hours)
- They may qualify for a 10% Tax Rate
What are Variable Hours?
The variable hours in the Salary Details option is to be used on employees where their hours vary each payroll.
By enabling Variable Hours, the base hours each payroll will differ. Therefore, entitlements of bonuses and leave will be calculated pro-rata, based on the hours worked. These hours will need to be inserted in the payroll manually or via process timesheets.
The Weekly Wage calculation (for SSC and Maternity purposes) is also calculated using a different methodology.
Setting an employee with Variable Hours
While adding or editing an employee,
- Go to Salary details
- Input an hourly salary rate
- Select Part-Time as Employment Type
- Tick Variable Hours
- Update the Salary Details
Paying a Part-Time Employee in Payroll
When running the payroll on Buddy, insert the Base Hours according to how much the employee worked. This will be automated if you Process Timesheets instead.
At the bottom section, you can also un/tick the number of weeks worked, reflecting the SSC and MFC contributions.
Part-Time Tax Rates
Part-timers may have varying tax rates. Although there is a tax rate called "Part-time (Qualified)", not everyone qualifies for this.
Therefore, the Tax Rate should always reflect the FS4.
In case they are eligible, one common setup is as follows:
- Social Security Status as "Employed Full-Time elsewhere"
This means that the employee will not pay SSC from the employment with your company. - Tax Rate as "Part-Time Qualified"
- A custom tax rate for any income over €10,000 qualifiable earnings
- A non-applicable Sick Benefit Rate
This is automatically disabled once the SSC status is set to Employed Full-Time Elsewhere