When onboarding employees, you might have encountered a case where an employee is still a student. Students are treated slightly differently when it comes to tax and social security calculations.
To set up a student on Talexio, the below fields are especially important (for information on how to add any type of employee, click here):
Date of birth
This is important because students under 18 years of age pay a different social security amount to students ages 18 and over:
Use 10% Rate (If SSC Cat B)
If the employee earns between €0.10c and €182.83 per week*, then they are entitled to choose whether to pay the weekly NI rate or else 10% of their weekly wage. It is important to note that the 10% option under category ‘B’ applies only to those under a part time contract:
That is selected from the below:
Here, you will be asked to choose whether the employee is a student. If you tick 'is student' then you have set the employee as a student worker. However, upon ticking this button, a new field will pop up underneath. This is the 'on student apprenticeship' button. If the employee is on a student apprenticeship, then you will need to tick it.
But what is the difference between a student and a student apprenticeship?
Students are those individuals who attend a course at the university of Malta (or any other university, sixth form, educational institution). Student apprenticeships are special schemes offered by The Malta College of Arts, Science and Technology (MCAST) or similar institutions as recognised by the Government of Malta. Students who join the Apprenticeship Scheme will be employed on a definite contract throughout their course where they will be undergoing a period of study and assigned employment.
Below are the payroll differences for students and student apprentices:
|Falls under CAT A, B, or C for SSC (Depending on income)||Falls under CAT E, or F (Depending on date of birth)|
|The stipends/grants receivable from the educational institution (albeit exempt from any tax) is considered as a main source of income and thus any part time employment activity sought and performed on own right may qualify to be taxed according to the rates as stipulated by the Part Time Rules (as long as all the part time criteria are adhered to).||Tax for student apprentices are the same as for students (see adjacent column).|
|Government bonus/allowance is as per normal employment (it is based on Prorata)||Are only entitled to June and December government bonuses (it is based on Prorata)|
|Leave is calculated prorata||Leave is calculated based on the employee's contract|
*2022 rates. For an extensive view of the social security rates, please visit the Commissioner for Revenue's site.