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Guidelines for Stable Employees Bonus Scheme for Trainers
What is SEBS?
The Stable Employee Bonus Scheme “SEBS” came into effect on 1st May 2001. The scheme is financed through a 3% deduction from all prizemoney and distributed by Horse Racing Ireland to all trainers who then make payment to all eligible staff for placed horses of their yards at the end of each quarter.
Who qualifies for SEBS
All currently registered members of stable staff or stable staff who have been registered in the period covered by the payment are eligible to receive the bonus. The person must also be entitled to a payment under the terms of the agreement in place in the yard. A copy of the agreement must be available in the yard and displayed for all staff to see.
Does the staff member need a stable card?
Yes, someone cannot be registered as Stable Staff without a stable card.
How often do I pay the SEBS?
Details of the SEBS bonus won by your yard are available online at all times. The bonus for the previous quarter is paid to your bank account in each January, April, July and October. You must let your staff know in which payroll this will be paid. In some yards there is an agreement that payment will be annually and not quarterly.
Why is it my responsibility to pay it?
It is the responsibility of the trainer to make this payment as they hold the relevant revenue details in relation to each eligible member.
How do I divide the money?
The bonus is divided per the agreement between all employees in the yard. A copy of this agreement must be lodged with the IHRB. This agreement lasts for the calendar year. It is recommended that the bonus is split equally between all members on the agreement.
Do I need to provide the IHRB with a copy of the Agreement between myself and the staff?
Yes a copy of the annual agreement must be lodged with the IHRB. This agreement also needs to be displayed for all staff.
Why do I need to deduct tax and PRSI from the bonus?
The payment, like salary, is subject to Tax, PRSI and USC and therefore these need to be deducted from the overall payment for eligible staff who are employees. If the staff member is self-employed then they will be responsible for their own taxes.
Can I deduct the employers PRSI from the gross payment?
Yes, you may deduct the employers PRSI from the bonus before making the bonus payment. This applies to bonuses payments for PAYE employees only. No PRSI can be deducted in respect of the share of self-employed staff. This is because no employers PRSI is applicable in such cases.
What paperwork do I need to complete?
The Annual Agreement must be agreed with your staff and provided to the IHRB. If you are in receipt of a quarterly payment, you will receive correspondence from the IHRB by email which must be completed and returned to the IHRB confirming that the monies have been distributed in accordance with your Agreement within the deadline.
Failure to respond to the correspondence within the required deadline may result in disciplinary action.
Do my staff have to complete any paperwork?
No staff do not need to complete any paperwork.
What happens if I fail to make a return?
Failure to make a return within the required timeline will constitute a breach of Rule 298 and will be referred to the Referrals Committee.
I got less of a bonus than expected, who do I speak to?
You can speak to a member of the client accounts team in HRI
HRI – Client Accounts – Phone- 045-455444 email: clientaccounts@hri.ie
Details of the bonus are kept in the SEBS account and can be viewed online at any time.
My employee owes me money, can I withhold any of the SEBS payment?
No money can be withheld by the trainer unless specifically requested in writing by the employee.
I have no staff or raceday help and do not wish to receive SEBS – what do I do?
You should contact HRI to advise that you do not have any staff and wish to opt out of receiving the bonus and this application to opt-out will be reviewed and staff registration verified via IHRB. If at any stage in the future you register staff you will be included in SEBS and must lodge an Agreement. Please note the requirements under Rule 149 to register staff.
I have family members working for me – do they qualify for the bonus?
Only people registered should be in receipt of the SEBS payment. Therefore, if the family member is appropriately registered, they would be eligible for a payment if included within the agreement. Appropriately registered means the staff member must be registered on the Register of Stable Staff and entitled to a payment under the agreement in the yard.
I have staff working for me that work in other yards – do they qualify for the bonus?
At present staff can only get a SEBS payment from one yard. Please discuss with the staff member to ensure only one is being paid.
Do I need to pay SEBS for the winners/placed horses abroad?
Yes, any prizemoney won abroad is included in the bonus. When this is received by HRI this will be included in the next quarterly payment to you for onward distribution by you in accordance with the agreement. Please note that each foreign racing authority has a different cycle of payments.
What happens if I relinquish my license, or my license is revoked?
If you relinquish your license or it is revoked, you must undertake to distribute any SEBS money in accordance with your agreement. You should contact HRI who will advise you what to do. Payment of the SEBS may be made to you for immediate distribution to your registered staff prior to them leaving.
What happens if my license is suspended?
Depending on the duration of the suspension payment of the SEBS may be made to you for immediate distribution to your registered staff. You should contact HRI who will advise you what you need to do.
What needs to be in my agreement?
The Agreement needs to set out the percentage due to registered staff either by name or by role, the period the Agreement is to refer to and when the distribution will occur (specifically if outside the quarterly period). If percentages refer to names Agreement should provide for new staff joining within the period of the Agreement. All staff members registered at the time of the Agreement should sign it to confirm agreement. In exceptional cases nominated staff members on behalf of all staff members may sign once agreed by the majority of the staff. That nomination process should be recorded.
Who do I discuss any issues with?
You can contact the IRTA, ISSA, IHRB or HRI for further information. Contact details are as follows:
IRTA – phone 045 522981or 0872588770 email: office@irta.ie
ISSA – phone 045 531 911 email: info@issa.ie
IHRB – phone 045 455 600 email: licensing@ihrb.ie
HRI – Client accounts – phone – 045-455444 email – clientaccounts@hri.ie
Restricted Trainers Association: 087-2254734
As the SEBS agreement will be liable to Income tax, PRSI & USC shouldn’t the SEBS agreement be included in all the stable staff employee contracts?
Yes, we would recommend that it is covered in the employee contract.
Can the SEBS payment be paid in part by a voucher as staff can receive annually a voucher up to €500.00 free from tax in any given year?
No, under current legislation the voucher can be used for non-contractual payments. For staff eligible to SEBS this is a contractual payment. If the SEBS recipient is not a PAYE employee this option can be used.
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