# Nanny Tax and Rates



## Deisce (18 Sep 2013)

Hi,
We are looking at hiring a nanny to mind our children in their own home. 

My first question is what people typically pay. I had thought that the €10-€12 an hour rate was gross. But our candidate has informed us that she expects us to pay her USC, tax as well as our employers PRSI. Is this usual?

My second question is around cost. So for arguments sake her tax credits are for single woman. She will be working 27 hours a week to begin with at €11 per hour so thats €297 euro + Employers PRSI(32) + USC (8.02)= €337 a week for me.

When she moves fulltime she will be working 45 hours a week for €10 per hour net. Now my costs go up. Thats €450 euro + Employers PRSI (48) + usc (18.40) +Employee PRSI (18:00) = €534.40 a week 

Is that a fair ballpark figure. Or am I missing something. I used taxcalc.ie to calculate.


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## mandelbrot (18 Sep 2013)

You'd want to be off your head, or very badly stuck, to even entertain this proposal.

The figures you've outlined above illustrate exactly why - it's madness to agree a net pay with someone (particularly net hourly pay).

What if she has another part-time job to which she allocates all of her tax credits, as she is entitled to - will you then bear the cost of ensuring she still has the same net pay from you..?


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## Guns N Roses (18 Sep 2013)

If you're looking for someone to mind your children in their own home then why don't you use a childminder instead? 

Ours costs €150 per week which works out about €3.33 per hour. That rate also includes meals. 

Most childmilders who mind children in their own home don't have to pay tax as long as their gross income doesn't exceed €15,000 per year.


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## Sandals (18 Sep 2013)

A nanny is a qualified person specially for your home and your child/ren.

A childminder is in their own home (normally) and so have the opportunity to earn extra by having more children in their care.

Schooldays.ie is a great website under childminder forum for information on what to pay or what to charge.


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## Sandals (18 Sep 2013)

Guns N Roses said:


> Ours costs €150 per week which works out about €3.33 per hour. That rate also includes meals.



€5 an hour is normally the rate in minders own home for one child, €8 for two siblings and so on. €8-10 in child's home. Some childminders will do a daily/weekly figure rounding it off to a even figure.


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## Deisce (18 Sep 2013)

Thanks for input.

We have three children under 5 including a baby. We used creche and childminders already so know the score there. The advantage for us is school is across road and alot of facilities within walking distance so a nanny at home means no commute for children.

Anyone use a nanny in their home?


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## mandelbrot (18 Sep 2013)

Deisce said:


> Thanks for input.
> 
> We have three children under 5 including a baby. We used creche and childminders already so know the score there. The advantage for us is school is across road and alot of facilities within walking distance so a nanny at home means no commute for children.
> 
> Anyone use a nanny in their home?



If you read your OP again you'll see that the first sentence suggests the "nanny" will mind the children in "their own home" - this suggests the nanny's own home.

But I think you actually mean the nanny will mind the children in YOUR home?


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## Skybox (19 Sep 2013)

We have hired a nanny to work in our home and mind our children.

Why not agree an annual salary with yours, as we have done, rather than an hourly rate? And write up a contract of agreed hours (include full time and part-time) and general conditions of work. 

If you hire somone to work in your home you become their employer and have to be compliant with tax regulations and pay Employers PRSI 10.75% as well as the USC and PRSI. And you will have to offer paid holidays. I don't offer sick pay, but to be fair, our Ananny has never taken sick leave (even in her former emplyment situation).
I use an accounting firm to manage the payroll, so they issue a payslip and caculate all the taxes and arrange transfer of funds from my account to revenue every month. I then pay her directly per instructions from the accountant.

You should read this guide" Employing a Nanny A Tax Guide for Parents " 
(sorry I don't have enough posts on this site to allow me to post a direct link - just google that title and you will find the document. ) 

Nanny's are a wonderful form of childcare, especially if you have a baby. When you think of the costs of having 3 in creche, and the hassle of getting them all out of the house in morning you realise the value of having someone in the home who will cook for them, do light cleaning and provide a home environment, a well as take them out for local activities. 

Hope this helps.


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## Skybox (19 Sep 2013)

I also menat to add that we pay a salary of €25,000 gross for a 40 hour week (and then pay empolyer PRSI on top of that) so it costs us €27,687.
And then factor in the cost of the accountant. 

What would a creche cost you for your 3 children?
The creche won't mind the children if they are sick, but a nanny will - that is priceless to be honest.


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## Guns N Roses (19 Sep 2013)

mandelbrot said:


> If you read your OP again you'll see that the first sentence suggests the "nanny" will mind the children in "their own home" - this suggests the nanny's own home.
> 
> But I think you actually mean the nanny will mind the children in YOUR home?


 
That confused me as well. It didn't make sense why you would hire a nanny to mine your children in the nanny's home.

As Mandelbrot said, it looks like the Op's means her home.


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## Deisce (19 Sep 2013)

Yes in the children's own home rather than in the nannies. Sorry for confusion


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