Employing chilminder in own home

[mammyof2]

Hi there, am thinking of employing a lady to mind my children in my own home. Have been reading through the Revenue site re registering as an employer/paying tax and PRSI and am more confused than ever ... If anyone out there is currently doing this, be grateful for your advice on the following

- Is it easier to pay an accountant to do all the registration/payroll/tax and PRSI calcuations rather than try and do it yourself if you have no experience of same? What would be average of cost annually of this?

- Assuming childminder earns approx 400 a week, what should I expect approx cost weekly on top of this for tax and PRSI

Thanks!

 

[Charity]

I would suggest you outsource the payroll to a bureau. Find a small company who will do it all for a reasonable fee. Paying monthly rather than weekly will reduce your payroll processing charges and you should expect to pay around €20 plus VAT per month for an all inclusive service. Registering as an employer is simple enough, download form TR1 from revenue.ie

Employer PRSI is 10.75% of the gross wages paid.

 

[mammyof2]

Thanks Charity, that is very helpful. How does the tax work - would the payroll company automatically calculate and deduct this from the total wages?