# Employing a family member in own Ltd Co



## GJF1967 (1 Feb 2010)

Am I able to employ my 16 yr old daughter in my own Ltd company to do office work...databases, typing etc?


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## Setanta12 (1 Feb 2010)

No problem. Treat like any other employee.


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## Rascal (3 Feb 2010)

This is NOT like employing any other employee.

There are strick Revenue Guidelines when it comes to employing a family member.

There are also criteria to be followed so that the employee qualifies for the Employee Tax Credit.

Please also not the 'special' PRSI rate for family members.

IF you want the full criteria, just send me an email/private message.


Regards


Rascal


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## mathepac (3 Feb 2010)

Rascal said:


> ... IF you want the full criteria, just send me an email/private message ...


I'm sure OP will find the information useful, but why not post the details here so others can benefit, which is the purpose of AAM?


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## jack2009 (3 Feb 2010)

*Employing family members and PRSI*

Most employees are liable to pay PRSI.  Exceptions to this general rule apply in the case of certain f_amily employment_. This term is used to describe a situation in which a self-employed sole trader either employs, or is assisted in the running of the business, by a spouse or by other family member(s). If the business does not operate on a sole trader basis - for example if it is a Limited Company or a Partnership - it is not _family employment_.
The following categories of _family employment_ are insurable under the social insurance system in exactly the same way as employments that have no family connection:
If you are employed as an employee by a _prescribed relative_ and the employment is not related to a private dwelling house or a farm in or on which both you and the employer reside (PRSI Class A or Class J applies). If you are employed as an Apprentice by a _prescribed relative_ (even if the apprenticeship employment does relate to a private dwelling house or a farm in or on which both you and the employer resides) there must be a registered Contract of Apprenticeship involved (PRSI Class A or Class J applies). 
*A prescribed relative is a parent, grandparent, stepparent, son, daughter, grandson, granddaughter, stepson, stepdaughter, brother, sister, half-brother, or half-sister.*
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
If you are employed as an employee by a _prescribed relative_ and the family employment relates to a private dwelling house or a farm in or on which both you and the employer reside
If you assist or participate in the running of the family business but not as an employee. (For example, a son/daughter who is attending full-time education who participates in the business (e.g. farm) after school hours or a spouse who carries out book-keeping work for the business - but is not an employee)
*Points to note:
*Even though you may not be insurable for social insurance purposes PRSI Class K the health levy may be payable.
PRSI Class M is used to record situations in which there is no liability whatever to either Social Insurance or health levy.
Subject to certain conditions, if you cease to be covered by compulsory PRSI you may opt to become insured on a voluntary basis and pay Voluntary Contributions.


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## Hans (4 Feb 2010)

You remember that it is not you that is employing your daughter but the company so family doesn't come into it.  Probably this person will only be working partime so can be kept below the tax treshold and also low enough that they will not have to pay PRSI and company will only have to pay eight and half%


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## Arch2 (4 Feb 2010)

One other thing-  Make sure the hours worked is not greater than those permitted under labout law as the employee is only 16, the hours are limited


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## Latrade (4 Feb 2010)

Arch2 said:


> One other thing- Make sure the hours worked is not greater than those permitted under labout law as the employee is only 16, the hours are limited


 
To add to the form filling and bureaucracy:

Health and Safety Authority's Guidance on Children and Young Persons. Part of the Safety, Health and Welfare at Work (General Application) Regulations, 2007.


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## Bill Struth (9 Feb 2010)

This may be of interest:

[broken link removed]


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## lig (8 Apr 2014)

@Rascal : this is an old thread.I am unable to find a link to send an email or PM. Can you please help with info on employing a family member in my 'Company' ?


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## 44brendan (8 Apr 2014)

The company does not have family members, it is an independent employer, so standard employment rights apply.


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## Altlock (11 Jul 2014)

*Employing wife as bookkeeper*

As a sole trader in a home based business I would like to employ my wife as bookkeeper on a nominal wage. I will register her as an employee and pay class A prsi.  My question is: when she reaches retirement age will she qualify for the State Contributory Pension?


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## mandelbrot (12 Jul 2014)

Altlock said:


> As a sole trader in a home based business I would like to employ my wife as bookkeeper on a nominal wage. I will register her as an employee and pay class A prsi.  My question is: when she reaches retirement age will she qualify for the State Contributory Pension?



You cannot employ your spouse as a Class A employee.


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## Joe_90 (12 Jul 2014)

Altlock said:


> My question is: when she reaches retirement age will she qualify for the State Contributory Pension?



No


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## Joe_90 (12 Jul 2014)

@lig they may not qualify for the PAYE credit
http://www.revenue.ie/en/tax/it/credits/paye-employee-credit.html


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## Purple (23 Jul 2014)

44brendan said:


> The company does not have family members, it is an independent employer, so standard employment rights apply.



Exactly. All the links above about employing family members relate to sole traders, not limited companies.


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