Freelancer vs Employee: Which Do You Need?

Since the Supreme Court's 2023 Karshan Midlands Ltd v Revenue Commissioners decision, determining whether a worker is an employee or a genuine freelancer has become one of the most important legal questions for Irish businesses. Revenue is actively auditing arrangements and reclassifying workers, with backdated PAYE, PRSI, and USC penalties for companies that get it wrong.

The Karshan test examines five factors: whether there is a genuine contract, mutuality of obligation, the degree of control exercised, whether the worker is in business on their own account, and the overall nature of the relationship. This tool walks you through each factor and gives you an indication of where your arrangement sits. For borderline cases, professional advice is essential.