Tax\insurance implications hiring child minder

1

10one10

Registered User
Messages
20
Hello,

I am looking into hiring a child minder and was wondering if anyone could tell me the formulae for calculating employer PRSI, PAYE and USC? . I know I can get professional help for such matters, but as preliminary investigations I need to work out whether this is something I can afford before proceeding.

If I am paying the child minder €1,000 per month net, how do I work out the gross pay and what PRSI, PAYE and USC is due from my end as am employer.

Many thanks.
 
By net I mean the minder wants €1,000 cash in hand per month. So I've to work backwards to figure out how much that will cost me with taxes on top.
 
Don't ever agree a net wage with anyone it exposes you too much!

A single person will qualify for a single persons credit of €1,650 per annum a and a PAYE cr of €1,650.

So will be exempt from income tax up to €16,500 per annum and will pay 20% above that.

PRSI does not apply at income under €18,512.

USC applies at different rate on levels of income.

You should be proposing a gross annual pay of €12,288 which equates to €1,000 (per month) for the average employee. If they chose to allocate their allowances else where then that does not effect you. Employers PRSI is 8.5% at that level.
 
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Thanks Joe 90. Yes I agree it was a bad move negotiating on a net wage. To be honest it only dawned on me that there would be tax implications after the interview. It only applies if they are minding the child in your home, otherwise in their own home they are self employed and responsible for their own taxes.
 
ircoha said:
U need employer ins also
Click to expand...

Damn, this is starting to sound like a load of hassle...


ircoha said:
Not my area but could it be done the self employed route
Click to expand...
If anyone could please advise is it possible for the child minder to declare herself self employed?
 
Looks like it depends on the policy re the employer insurance
you will need to check your own policy
for example this is the policy from RSA as peddled by 123.ie
http://www.123.ie/downloads/rsahouseholdpolicy0114.pdf
page 29: sect 3.1

I do know that some friends of mine took out a pay-related policy to cover an child minder as they did not want their house policy at risk if it went pear-shaped.
The pay-related bit meant any payout was linked to pay

PS have u an employment contract lined up which should cover the grsoss versus net pay, as well as other stuff
 
hi you will have a domestic servant in your house, an employee, be thankful shes looking to have her taxes paid as she is fully above board, meaning you are too. A childminder is only self employed in her own home.

€250 a week sounds very good value as its at least minimum wage for someone to come to your house, unless youv little hours. I would personally check her car insurance also, has she declared she'd be carrying childminded kids...draw up a contact also around issues like food, her friends etc in your house, etc...

you can post in schooldays.ie, rollercoaster.ie where the pros can advise further.
 
I wonder does the child minder want to above board though? OP said childminder wants €1,000 per month 'cash in hand', that usually means not above board, maybe needs clarifying!
 
Thanks to everyone for the sound advice. I'm going to look at alternatives as this is very much a cash in hand industry. Even if I found someone above board it's a monumental hassle to have to register as an employer and everything that entails.
 
Just to answer one part of the question, some of the free payrolls (5 employees or less) can do "net to gross" calculations.
 
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