Crèche/Childcare Facilities
Employer-provided facility - If your employer provides free or subsidised childcare
facilities for employees, a taxable benefit does not arise where the childcare facility
is provided on premises which
(1) meet certain requirements of the Child Care (Pre-School Services)
Regulations 1996, and
(2) are made available
solely by the employer, or
by the employer jointly with one or more other participants in a joint scheme
and the employer is wholly or partly responsible for either
– financing and managing the facility, or
– providing capital for the construction or refurbishment of the premises, or
by any other person or persons and the employer is wholly or partly
responsible for either
– financing and managing the facility, or
– providing capital for the construction or refurbishment of the premises.
Independent facility - Where the above conditions are not complied with, e.g. if your
employer merely pays for or subsidises the cost to an independent crèche or child
care facility, the cost borne by your employer is a taxable benefit and PAYE and PRSI
must be applied to the amount paid and not reimbursed by you.
If your employer makes a block payment to a crèche or childcare facility, the
amount paid will be apportioned and treated as notional pay for the respective
employees. Your employer will apportion the block payment between the
employees having regard to the facts, including the number of children concerned
for each employee.