Seán Barrett
Question:27 Mr. Barrett asked the Minister for Finance the plans, if any, he has to introduce a simplified employment procedure for people hired to work in the home. [13727/97]
Written Answers. - Domestic Employees.
New arrangements to simplify the rules for employing a domestic employee in the home have already been provided for in this year's Finance Act. Under the new arrangements, which came into effect from 6 June 1997, the PAYE registration threshold is increased from £6 per week to £30 per week in a situation where an individual employs only one domestic employee in his or her home.
The effect of this is that such an individual will not need to register as an employer for PAYE purposes or to operate the PAYE system in respect of that employee. The employee remains liable to income tax on his or her earnings from the employer and will have to declare and pay any tax due direct to his/her Inspector of Taxes.
In addition, while the employee is not liable for PRSI, employers who come within the scope of the scheme are normally required to pay PRSI at a rate of 0.5 per cent of gross pay (Class J) to cover Occupational Injuries Benefits. The PRSI is paid directly to the Department of Social Welfare in a single annual payment at the end of the tax year.