Setting up as an employer for a nanny

I'm considering employing a nanny for minimum wage, 5 days a week, 7.5 hours a day. It comes in under the 352 cutoff so apart from registering with TR1, I assume I need to pay 4.25% PRSI and deduct 2% USC for employee. However, I'm seeing conflicting reports online re how much PRSI and income tax to deduct for nanny. Also I've also read that I need to pay 8.25% PRSI. Getting so confused. Would someone might pointing me in the right direction please (I've been on childminding.ie, rollercoaster.ie and revenue.ie to name but a few....)

Also, do I need to insist the nanny has insurance or do I need to do that please?

Any advice very much appreciated - thanks

You need to register as an employer with TR1. The rate of PRSI is 8.5% for someone earning under 352 per week. It was reduced for a couple of years to 4.25% but increased again in 2014 I think.

The deduction would depend on the employee's tax situation but assuming they had full single tax credits their weekly pay would be as follows:

7.5 x 5 x 8.65 = 324.37 - let's call it 325
Tax due: 325 x 20% = 65.00 - tax credit of 63.46 assuming full single tax credits - tax due 1.54
USC due: (231 x 0.015) + (94 x 0.035) = 6.76
PRSI due: No employee PRSI due; employer PRSI due of 8.5% = 27.63

Cost to you of 325 + 27.63 per week = 352.63
Net payment to employee = 316.70

I don't know what the situation is with insurance though.

Thank you so much for that! So much clearer now!

You and the nanny are two different forms of insurance! You employing a a nanny implies a requirement for employers liability should she sue you for your negligence. Your household policy should cover you for "domestic employees so you are probably ok there".

A nanny having insurance is public liability in the event she injures a member of the public or damages property. Considering she is working solely for you do you really intend to pursue an insurance claim against her in the event of her negligence??!

Childming Ireland, through Kidd Insurance, now offer a nanny insurance package which either of ye can purchase....either way ensure your house insurance are aware of your domestic servant.,,

also ensure if she using her own car shes class II and probably will expect a fuel allowance....many families now have a car for nanny use...

yes, minimum wage is starting point but its normally €10 an hr for first child and increases depending on number of kids, duties, qualifications, experience etc,

make sure ye draw up a clear contract to avoid misunderstandings etc