While it might seem like the easiest option to pay your nanny cash in hand, it is never a good idea. Whether you are trying to save money, time, or the headache of dealing with Irish Revenue, it’s not worth taking the risk. Here we debunk the most common excuses given.
While there are a few additional costs to be considered, namely employer PRSI, it’s probably not as much as you think. The consequences of being found out by Revenue are much more expensive, significant fines, and possible prosecution.
In a lot of cases, we find that nannies are not aware of their legal rights and obligations or they don’t realise the consequences of waiving their legal right to benefits like illness benefits, holiday leave, and maternity benefits. This is often the case with young or inexperienced nannies.
It’s only when they go to look for a mortgage for example and they have to show proof of their income, that it becomes an issue. This is one of the main reasons cited by nannies as to why they will want to be paid through payroll.
If you do not comply, then you risk losing your nanny, getting reported to Revenue, and incurring a huge fine.
Parents often feel overwhelmed at the thought of registering with Revenue and all the administration that goes with it. If you are employing a nanny and you are paying them €40 a week or more, you must register as an employer with Revenue.
As an employer, you are responsible for deducting the PAYE, PRSI, and USC from your employee’s wages. You are also required to provide your nanny with payslips. A full list of your obligations as an employer is listed here: nanny payroll obligations
This is not the case. An increasing number of families are now registering as employers to ensure that they are fully compliant with the law. If you hire any kind of home help, you are now required to register online as an employer and submit returns on your employee’s behalf.
SureSitter is available to help you complete all of your statutory obligations in relation to payroll so you don’t need to worry. For more details on our payroll service contact us today.
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