"Someone who employs a carer directly has obligations as an employer, including registering as an employer and making income tax, USC and PRSI deductions from wages. You'd also have to consider your obligations under the new auto-enrolment retirement savings scheme that starts on January 1. This applies to employees who don't already have a pension scheme in respect of that employment, who earn more than €20,000 per year, and are aged between 23 and 60."
"If anyone employs a carer for themselves or another family member, they can claim tax relief against income tax on the cost of the carer. Relief is calculated, at your higher marginal tax rate, on either the actual amount spent on employing the carer or €75,000 - whichever is the lower. To qualify for the relief, you must be totally incapacitated by reason of physical or mental infirmity, and you'd need a medical certificate to support your claim."
Employing a family member as a carer creates formal employer obligations, including registering as an employer and operating PAYE with income tax, USC and PRSI deductions. The new auto-enrolment retirement savings scheme starting January 1 can apply to employees aged 23–60 who earn over €20,000, though eligible employees can opt in. Tax relief on the cost of employing a carer is available at the higher marginal rate on the actual amount spent or up to €75,000, whichever is lower. Eligibility for relief requires total incapacitation due to physical or mental infirmity and a supporting medical certificate. Claimants must be paying income tax to benefit from the relief. Employer responsibilities can be complex and may include pension obligations.
Read at Irish Independent
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