Employing spouse as a carer for incapacitated child

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grahamo

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Hi,
I'm hoping somebody can help Me here as I can't find answers even on revenue.ie. We have a disabled adult Daughter. My Wife is her full time carer. She needs 24/7 care. I have been told that there won't be a problem with Me employing a spouses as a carer. I understand I will have to register as an employer. Thats all good. I also understand that as an employer I would be no longer entitled to the incapacitated child tax credit. What I want to know is can My Wife then use the incapacitated child tax credit as part of Her tax credits?
Also, Would it be correct to pay class A1 prsi payments ( employer and employee) for a spouse ? or would it be class M?
Any help with this would be much appreciated.
 
grahamo said:
Also, Would it be correct to pay class A1 prsi payments ( employer and employee) for a spouse ? or would it be class M?
Any help with this would be much appreciated.
Click to expand...

"A person who is directly employed by their spouse is not considered to be in insurable employment so no Employers PRSI payments are due.

She could apply to make voluntary PRSI payments.

Family Employments that Are Not Covered for Social Insurance (PRSI)​

The following categories of 'Family Employment' are the exceptions that are not covered by the Social Insurance system:
  • If you are employed as an employee by your spouse.

PRSI and Family Employment

www.gov.ie www.gov.ie
 
Last edited:
Shirazman said:
No - it's Class S PRSI, payable by her.

"A person who is directly employed by their spouse is not considered to be in insurable employment so no Employers PRSI payments are due, therefore, they will be liable to Class S PRSI."

Family Employments that Are Not Covered for Social Insurance (PRSI)​

The following categories of 'Family Employment' are the exceptions that are not covered by the Social Insurance system:
  • If you are employed as an employee by your spouse.

PRSI and Family Employment

www.gov.ie www.gov.ie
Click to expand...
Thanks for Your help.
 
Thanks Folks! It seems to be a lot more complicated than I thought. I was thinking that I could employ My Wife as a carer as I would be entitled to tax relief for employing a carer for Our disabled Daughter. The other reason is to build up PRSI contributions for My Wife for pension purposes in the future. I'm employed full time. (Not self employed) so I would be paying her a salary from My salary. (To give her a feeling of self worth basically, She can't work as She has to care for Our Daughter full time and does not qualify for carers allowance as its means tested and I work)
 
If you employ you spouse she will not be liable for prsi. She will be class M which is zero cost and no benefits.
 
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