Any downside to registering for work as a junior?

[Seastheday]

My daughter, who is 14, is working for the summer in a family business. The owner of the business, my brother in law, is looking to put her formally on the payroll and have her fully registered etc. Is there any downside to registering her so early and essentially starting her career tax record?

Thanks

 

[Gordon Gekko]

I think there might be, but I’m no expert. I think if you start your PRSI record early, it makes it harder to get the full State Pension because of the dilutitive effect of subsequent breaks for education etc.

 

[Des Pondent]

I think if you start your PRSI record early, it makes it harder to get the full State Pension because of the dilutitive effect of subsequent breaks for education etc.

That was the case under the average system. The total contributions system is now being used, one is no longer disadvantaged by starting their working life early.

 

[Dr Strangelove]

There is no PRSI payable for anyone 15 and under.

She presumably won’t earn enough for USC or income tax either.

 

[Seastheday]

I think there might be, but I’m no expert. I think if you start your PRSI record early, it makes it harder to get the full State Pension because of the dilutitive effect of subsequent breaks for education etc.

Thanks Gordon. That’s what I thought I had read in the past as well and what prompted my question tbh. It’s only a handful of hours per week for a bit of summer cash and to help her uncle out but wanted to check to be sure.

Good to hear from Des Pondent that the new total contributions system avoids that risk.