Nanny Payroll Ireland - Covid-19 FAQs
hamburger symbol that once clicked, opens mobile menu

email: info@nannypayroll.ie |

tel: 087 389 9211 |

instagram: nannypayroll |

twitter: @nannypayrollirl

Covid-19 FAQs

Updated 03 June 2020

Can my nanny still come to my house for work during COVID 19 restrictions (lockdown)?

The Government has decided that everyone should stay at home until 18th May 2020 except for travel to and from work, where the work is an essential health, social care or other essential service and cannot be done from home. Included in the essential services list is “non-centre based childcare for those providing essential services”. You can read the essential services list at https://www.gov.ie/en/publication/dfeb8f-list-of-essential-service-providers-under-new-public-health-guidelin/.

If your nanny is coming to your house, you will need to provide them with a letter confirming that they are an essential worker. You can find a template letter here.

Government guidelines allow nannies of non-essential workers to return to work on 29th June 2020.

What are my options about continuing to employ my nanny or lay them off?

If you need to stop your nanny coming to work due to Coronavirus, you can temporarily lay your nanny off. Alternatively, you may need to reduce their hours. You firstly need to speak to your nanny and explain the situation to them. We also need you to get in touch with us so we can process your payroll accordingly. Depending on your circumstances, there are a number of possible scenarios:

a. If your nanny has been diagnosed with COVID- 19 or told by HSE or a GP that they need to self-isolate, they should apply for illness benefit. They do this directly through Welfare.

b. If you have no work for your nanny/ you have agreed for them not to come to work and you can’t pay them, you should advise your nanny to apply for COVID-19 Pandemic Unemployment Payment. This is a flat rate payment of €350 per week.

c. If you have no work for your nanny/ you have agreed for them not to come to work or on reduced hours but you want to keep paying them, you can apply for the COVID 19 Temporary Wage Subsidy scheme. This scheme is only open to you if you have lost a minimum of 25% of your income due to Coronavirus. You will have to make a declaration to Revenue to this effect.

d. If you have reduced your nanny’s hours from a full-time basis to 3 day per week or less but they are continuing to go to work, your nanny can apply for the Short Time Work Support through Welfare.

How does the COVID-19 Pandemic Unemployment Payment work?

You need to let us know that your nanny is being temporarily laid off and we will notify Revenue through the payroll. This is required before your nanny will be able to receive the COVID-19 Pandemic Unemployment Payment.

Your nanny applies for the payment directly through Welfare. The amount is a flat rate of €350 per week and can be claimed if your nanny has no work. If your nanny has more than one employment, they need to have no work across any of their employments to claim the payment and they receive €350 per week regardless of the number of employments held.

Your nanny needs to have been in employment immediately before 13th March to qualify for this payment (or 6th March if part-time).

If your nanny voluntarily leaves their employment, they do not qualify for the payment.

The payment continues for the duration of the Pandemic Emergency. You will then let us know when you would like us to put your nanny back on the payroll.

Revenue has indicated that it will treat the COVID-19 Pandemic Unemployment Payment as taxable income. Depending on a person’s overall income during a year, the COVID-19 Pandemic Unemployment Payment may affect a person’s overall tax liability for the year.

How does the COVID-19 Temporary Wage Subsidy Scheme work?

If you have a reduction in your income of 25% or more and you wish to continue to keep your nanny on the payroll, you can apply for the Temporary Wage Subsidy Scheme. The scheme runs for 12 weeks from 26th March 2020. If you apply for this scheme, your nanny should not apply for the COVID-19 unemployment benefit.

Essentially, you keep your employee on the payroll and continue to pay them some or all of their wage and you will receive a refund from Revenue for a portion of their salary. (Rates of subsidy below).

The Temporary Wage Subsidy Scheme replaces the Revenue Employer COVID-19 Refund Scheme.

Employees must have been on your payroll on 29 February 2020, and we must have made payroll submission on your behalf to Revenue in the period from 1 February 2020 to 15 March 2020.

The government announced changes to this scheme that apply from 4th May onwards. The rates are shown below:

Until 4th May 2020

From 26 March 2020 until 4 May 2020, the subsidy scheme will refund employers up to a maximum of €410 for each qualifying employee.

If an employee has multiple employments, each employer can operate the scheme based on 70% of employee’s net earnings. The subsidy will be limited depending on the employee's average take home pay:

Average net pay Subsidy Limit
€0 to €586 €410
€586 to €960 €350
Over €960 Up to €350 per week, if you have lost more than 60% of your earnings.

The subsidy is based on an employee's pay after tax, USC and PRSI, not their gross pay.

From 4th May 2020

From 4th May, the subsidy is based on the employee’s average net weekly pay from January and February 2020.

Income Threshold Subsidy Level
Previous average take home pay below €412 per week Up to 85% of the weekly average take home pay
Previous average take-home pay between €412 and €500 per week Flat rate subsidy of €350 per week
Previous average take-home pay between €500 and €586 per week 70% of the weekly average take home pay, up to a maximum of €410
Previous average take-home pay between €586 and €960 per week

Flat rate subsidy of €350 per week, where the employer pays a top up payment up to 60% of the employee’s previous weekly take home pay

Flat rate subsidy of €205 per week, where the employer pays a top up payment between 60% and 80% of the employee’s previous weekly take home pay

No subsidy is payable, where the employer pays a top up payment above 80% of the employee’s previous weekly take home pay

Previous average take home pay above €960 per week

Employee’s whose average take home pay has fallen below €960 can now avail of the scheme, subject to the rules above

No subsidy applies for employee’s whose current pay is more than €960. This is the case regardless of the level of any reduction in pay.

If you want to apply this scheme, you simply let us know and we will process it for you.

Are the payments subject to tax/USC/ PRSI?

COVID-19 Pandemic Unemployment Payment

Revenue has indicated that it will treat the COVID-19 Pandemic Unemployment Payment as taxable income. Depending on a person’s overall income during a year, the COVID-19 Pandemic Unemployment Payment may affect a person’s overall tax liability for the year.

Temporary Wage Subsidy Scheme

What can I do if I am struggling to pay my tax liabilities?

If you are concerned about not being able to pay your tax due to coronavirus, you should contact Revenue urgently.

Do I need to take extra precautions when my nanny returns to work?

Yes. The Department of Health, HSE and Health and Safety Authority published a Return to Work Safely protocol on 8th May 2020. We have produced a summary of the steps nanny employers should take here.

Still have questions? Contact us at info@nannypayroll.ie.