Pack in work and go back to college

Just researching for a friend.

She wants to pack in work and go back to college. She had a primary degree and professional qualification but wants to change track.

She’s employed, full time, about €100k a year. Married, hubby is on about the same, no dependent kids.

If she does quit can she sign on the dole? The company probably won’t make her redundant as they will need to replace her and are very much sticklers for the rules, which is fair enough.

She probably won’t qualify for any student grants, means tested ones anyway, maybe she will choose a springboard course and get funding via that. Is that possible?

While at college she can’t sign on but what about the summers? She might be able to find work in the summer but won’t work part time in term, learning won’t come as easy at it did at 18 so any reasonable course will need full attention she figures.

She knows she’ll miss PRSi credits for a couple of year studying and her contributory pension has a few gaps already but she figures on working past 66 anyway in her new career.

Any other state supports she hasn’t thought of? Her initial view was that she’d have to fund everything herself, just like she did when she was 18 but maybe not. Eg springboard.

I can’t answer any of your questions honestly. But, your friend needs to change course big time. Working in an environment which doesn’t suit for life can be awful or even worse, to say the least. Money ain’t everything, hard learned and being truthful.

If she ceases employment and states that she quit because of the need for a change of career, she should qualify for Jobseekers benefit. If it is deemed that this was not a acceptable reason, her claim payments would be reduced by up to 9 weeks.

She can state that she is available for and actively seeking employment (part time) during her course periods.

She can sign on for Jobseekers credits when her payments end.

Otherwise she could pay voluntary contributions. These would be expensive for the first year after she ceases employment. But she could skip this year and pay for subsequent years. These would cost 500 euro.

She could also get employment from a friend or family member.
3 hours per week at minimum wage would gain her 1 class A contribution per week. This employment could be as simple as babysitting.

The friend or family member can register as an employer and employ her. Details on how this works are available on Revenue.ie.

All of this is only necessary if she will be short of 2080 Prsi contributions at age 66.

S class said:

Otherwise she could pay voluntary contributions. These would be expensive for the first year after she ceases employment. But she could skip this year and pay for subsequent years. These would cost 500 euro

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Increased to 650 since October 2024

Over the years I've seen many people taking on roles, assignments and arrangements specifically in order to obtain PRSI credits and I've read and heard many advisors addressing the how this can be done, and I've never yet heard babysitting mentioned.

I can only assume there's a good reason behind that.

VInterested said:

Increased to 650 since October 2024

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This only applies to voluntary contributions based on previously paying class S.

Voluntary contributions based on previously paying class A is minimum 500 euro per year.

T McGibney said:

I can only assume there's a good reason behind that.

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Babysitting, or any form of household employment can be
legitimate employment for Prsi rules.

This PAYE employment will be fully Revenue compliant. All tax, USC and Prsi will be deducted at source.

The only exceptions are that a spouse cannot be the employer and the employment cannot relate to the house if both employer and employee both reside in that same house.
In both of these cases the employment is not subject to Prsi.

My point stands. I've just never ever heard it mentioned previously.

I would be also and especially wary of relying on non-business employment for crucial PRSI credits as I'd be afraid the employer would make a hames of it and end up invalidating the PRSI credits.

Just because you never heard of it doesn't mean it's not correct.
Your advisors are not up to speed.

As regards the home employer making a mistake.
Amendments can be made if the Prsi has not been correctly applied for any period.

All this can be set up by any person without the need for paying an accountant.

There are very helpful guides on Revenue.ie explaining the process.

"Just because you never heard of it doesn't mean it's not correct."

I never made any claim to that effect.

"Your advisors are not up to speed."
If something changed in recent years regarding the insurability of babysitting employments, then I'm all ears.

T McGibney said:

"Just because you never heard of it doesn't mean it's not correct."

I never made any claim to that effect.

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You made the statement that you never heard of it and you then assumed that there must be a good reason behind that.

This statement could be understood by other posters as you implying that it is incorrect.

Maybe you should clarify this statement.

I remain sceptical of the efficacy of your suggestion that's all.

Fair enough.

I have employed people for various home employments, including babysitting and it is legitimate and easy to operate.

Revenue make this process straightforward as everything is done online.

This process is Revenue compliant, unlike the payment of cash in hand to a household employee.