How you pay your nanny and tax implications

The severe lack of childcare places in Ireland along with a move towards flexible working means that, as a result, more and more parents are choosing to have their children minded in their own home by a nanny.

There are also lots of advantages to this type of childcare including not having to bundle the kids out of the house each morning to get to creche, less sickness, continuity of care and of course less time off work when the children are sick. In addition, your nanny may also carry out other duties around the house including preparation of meals, laundry taking children to school, pick-up etc.

It can also be a more viable option financially when you have two or more children. However, when you hire a nanny, childminder, or au pair to look after your children in your home, you become their employer. We have compiled some helpful to assist you when interviewing childminders and nannies.

Nanny employment rights

As an employee, your nanny is entitled to a number of legal rights and entitlements.

• All nannies are entitled to receive the minimum wage, currently €11.30 (up from €10.50 in 2022) per hour in Ireland
• The maximum average working week should exceed 48 hours
• A written contract of employment must be provided within 5 days of commencing work
• All employees must receive a payslip at each pay period showing gross wages and all deductions
• Employees are entitled to breaks or rest periods during the working day. These include at least 15 minutes for every 4.5 hours worked and a 30-minute break if you have worked at least 6 hours, which can include the first 15-minute break. Employees do not have to be paid for this time
• Statutory annual leave of 4 weeks must be provided for each year worked. However, more can be provided at the discretion of the parent. All full-time employees are entitled to be paid for 9 public holidays

Parents employer obligations

As an employer, you have a set of obligations and responsibilities that you must adhere to including:

• You must register as an employer with Revenue
• Provide your nanny with an employment contract
• Calculate and pay PAYE, PRSI And USC on their behalf
• Pay employer’s PRSI contributions for your employee to the Social Insurance Fund
• Provide them with a payslip for each pay period
• Submit an online return to Revenue at each pay period

Useful Links

Revenue has produced a helpful guide to registering as an employer which you may find useful:

https://www.revenue.ie/en/life-events-and-personal-circumstances/children/registering-child-minders-as-employees.aspx

Register online as an employer:

https://www.revenue.ie/en/employing-people/index.aspx

By SureSitter