Employing a childminder - does anyone pay PRSI?

smarthinking

Registered User
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24
We are about to employ a childminder. Revenue have informed that we should pay Revenue 8.5% per month PRSI. Does ANYONE do this?
 
Yes they do.
We have a few customers that do this.
 
Could you not ask them to work as a self employed person, and to look after all their own tax and PRSI affairs?
 
Could you not ask them to work as a self employed person, and to look after all their own tax and PRSI affairs?

A person working in your premises, being paid an agreed hourly rate, under your direction and control, having to do the actual work themselves is very unlikely to meet the accepted criteria for self-employment.
 
A person working in your premises, being paid an agreed hourly rate, under your direction and control, having to do the actual work themselves is very unlikely to meet the accepted criteria for self-employment.


mmm what about it contractors?
 
I have a nanny and I pay her prsi,holiday pay etc. I don't think it's that unusual as I know quite a few other people doing the same. You would pay 21% VAT on creche fees. 8.5% is very reasonable by comparison and will directly benefit your employee, although the paperwork is a nightmare.
 
mmm what about it contractors?


Read http://www.welfare.ie/publications/taxguide.pdf which may give you guidance on what constitutes an employee or a self-employed contractor.

Some trades/professions may, more readily, lend themselves towards self-employment than others. As the original post relates to a childminder working in the employer's home and as this is generally governed by [broken link removed]
that was the basis of my reply.