Family Employment question?

Sand Wedge

What are the Tax and PRSI costs associated with the follwing situtaion?

Going to employ a parent as a housekeeper who lives in their own house to clean my house. Thinking of paying them €45 per week.

Questions:
1) Will the parent receive PAYE Tax Credit for this employment?
2) What PRSI class will parent come under?
3) I am a PAYE worker and fill in Form 12's every year. If i register as an employer to employ my parent will i have to send in Form 11's or can i keep sending in Form 12's.

All information greatly appreciated.

Thanks in Advance.

nompere

Seems pointless.

You won't get any tax allowance for "employing" your parent, but they might end up with a liability for tax or levies. I'm not even sure if Revenue would register you as an employer when you don't have a business. If they did your oarent would get a PAYE allowance limited to the amount of the pay they receive. It's probably not an insurable employment for PRSI.

But really ...!

Keep it informal - you don't ask the babysitter for a tax credit certificate do you?

Sand Wedge

Would the parent not come under class AO for the employment and as such these contributions count in qualifying for state pension?

dbran

Hi

It would be easier to just make a voluntary contribution for PRSI rather then going through all the rigmarole you described.

http://www.citizensinformation.ie/en/social_welfare/irish_social_welfare_system/social_insurance_prsi/voluntarysocialinsurancecontributions.html

Hope this helps

Regards

dbran

MBateson

nompere wrote: »

I'm not even sure if Revenue would register you as an employer when you don't have a business.

I'm told you can register in that situation, presumably for those rich enough for household staff etc.