Navigating the Challenge of Caring for a Parent

Taking on the responsibility of caring for a parent or loved one can be overwhelming. Not only is there the emotional turmoil of being confronted by the full-circle life moment of parenting a parent, but there is the added stress of navigating finances, juggling delicate family relationships and dividing responsibility up among family members.

It can be difficult to know where to begin – especially if you are the sibling charged with ensuring a parent receives quality care. It’s a distressing situation to be in, not least because your relationship with your parent shifts from child to caregiver. There is also the strain on your time and resource, while juggling work and family responsibilities. Logistics aside, the stakes are incredibly high, with added pressure from wider family members who may be looking to you to for answers.

Often, allowing your parent to stay in their own home , surrounded by the familiar is the preferred option. Employing a private carer can offer a psychological comfort to both you and your parent – the former has peace of mind, while the latter is granted the independence and dignity of staying under their own roof.

In addition to having a parent’s physical needs met, hiring a private carer offers companionship and routine, and helps address other challenges, such as juggling work or parenting your own children.

However, hiring a private carer comes with its own unique set of challenges around employment rights, Revenue and payroll. In this article, we break down common worries and concerns for adult children when it comes to hiring a private carer for their parent.

1. I Don't Want to Shoulder All the Responsibility

The thought of shouldering all the responsibilities associated with caring for a parent can be daunting. It’s not just the constraints on your time, but with sibling inheritance battles frequently hitting the headlines, the task comes with a perceived level of financial scrutiny. At Carer Payroll, complimentary access to our online employer dashboard is included with your subscription, so you don't have to go it alone.

You can share access to the dashboard with siblings or other family members, providing full transparency and clarity on the employment of your parent’s carer, while sharing the administrative responsibility.

Once you are set up on our cloud-based payroll system, you – or your siblings - can login at any time, any where via the employer dashboard on our website and see all pay summaries to date, manage annual leave and approve timesheets. All you need is an internet connection.

Our employee portal reduces the need for back-and-forth emails with your parent’s carer. They can access their payslips directly and apply for annual leave. We’ll update your employee records in accordance with law changes, for example changes in statutory sick pay, to ensure you stay compliant with the law. You will be notified of any regulatory changes that affect your payroll, like changes to minimum wage or auto-enrolment pensions.

2. I'm Worried About Record Keeping

Keeping track of carer expenses, especially when enduring power of attorney or HSE funding is involved, can be a source of stress. With Carer Payroll, rest assured that your records are in safe hands. We maintain comprehensive records for six years in compliance with GDPR regulations. Furthermore, we provide you with detailed payroll reports whenever you need them, ensuring transparency and accountability.

Sensitive employee information including personal information, payslips, and timesheets are stored securely in our cloud-based payroll system. All your payroll summaries are stored securely online in one place. You can login to our employer dashboard via carerpayroll.ie, anytime, access all your account information and make any changes you require. You can also set up auto-alerts when new payroll information is available.

3. What Tax Relief Am I Entitled To?

Whether you employ a carer privately, employ a carer to complement or top up the free Home Support Service provided by HSE, or receive HSE funding for Consumer Directed Home Support, we can help you navigate the complexities of being an employer. We can also help you draft an employment contract tailored to your needs, arrange vetting of your carer and help you claim up to 40% tax relief back on the cost.

Tax relief is paid at the marginal tax rate of the person paying for the care, either 20% or 40% up to a maximum of €75k. This relief can be claimed back at the end of each tax year. For more information and to initiate the process, you can access the HK1 form here.

Tax relief can be claimed on the total cost of employing a carer, not only their wages so this can include our fees too. We know the rules around what you can and cannot claim tax relief can be perplexing, so we’re always on hand to provide advice.

4. I Don't Know How Long I'll Need a Carer For

The uncertainty surrounding the duration of care can be unsettling. At Carer Payroll, we understand your concerns and provide clarity on employment terms and redundancy arrangements. Our service allows you to meet all your statutory obligations as an employer.

We can advise you on the difference between fixed term and permanent employment contracts and which is more suited to your needs. We offer bespoke employment contracts tailored to your particular circumstances.

If the need for care is less than two years, no redundancy pay is due. Familiarise yourself with the notice periods for redundancy here.

We have found that clear communication and transparency is key when employing a carer, so make sure to keep them updated with relevant medical information, giving at least the minimum amount of notice if their employment ceases.

5. What if I Don't Need the Carer for Short Spells (e.g., Hospital Stays)?

Temporary disruptions in care, such as hospital stays, are not uncommon. To address this concern, Carer Payroll includes a clause for temporary layoff or short-term working in all our contracts as standard practice. This provides flexibility and ensures that you're not financially burdened during such periods.