Employing a Child-minder – What are the Tax implications?

If you are considering hiring a child-minder to look after your children, does this mean you will become an employer and will have to pay the normal payroll employer taxes?

If you employ someone to work as a minder in your own home, then you may be considered as an employer for PAYE purposes. An individual who pays an employee €8 or more a week must register for and operate a payroll for PAYE, USC and PRSI. You would also incur an additional cost in the form of employer’s PRSI contributions.

However you may not need to register for PAYE as an employer if you qualify for the ‘Domestic Employer Scheme’. To qualify you must be an individual, have only one domestic employee, and pay less than €40 per week.

If the children are cared for in the minder’s home, then this would usually be considered to be a business carried on by the minder and you would not be required to register for PAYE and process a payroll in those circumstances.

Contact Tailored Payroll for all your payroll needs on 0419883524 or Request a callback from a qualified Payroll Team member today.