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You employ someone at your home

Employing someone at home

Employing someone at home makes you an employer, with a cost that is not the wage paid and a tax credit that gives part of it back — provided you report it in the right place. Cost the real employer outlay through the CESU scheme, then the tax credit that applies, and carry it onto the reliefs and credits schedule. 4 steps, from the cost to the box.

Start here: Cutting your tax with credits and reductions

Understand: deduction, relief, credit — and which one applies here

  1. Step 1 of 4
    CoursePaid individually26 min

    Cutting your tax with credits and reductions

    What separates a credit, refunded even with no tax, from a reduction that evaporates; the childcare ceiling counted per child and applied before the rate; and the two gift rates with their 20 %-of-income limit. Three modules on a household obtaining 5 064 €. All the prose is free to read; the case study and quizzes are sold.

Cost it: the CESU employer outlay, then the tax credit

  1. Step 2 of 4
    CalculatorFree result

    Cost of a home employee calculator (Cesu)

    Starting from the net hourly pay you hand over, the calculation rebuilds the gross wage, adds employer contributions, removes the flat-rate deduction of 2 € per hour worked, then subtracts the tax credit worth 50% of the expenses actually borne, capped at 12 000 € of expenses in the general case.
  2. Step 3 of 4
    CalculatorFree result

    Home employment tax credit calculator

    The tax credit is 50% of personal-services expenses, retained up to €12,000 a year — raised by €1,500 per dependent child or person over 65 up to €15,000, to €15,000 (€18,000 with increases) in the first year of direct employment, and to €20,000 in case of disability.

Report: the 2042-RICI schedule of reliefs and tax credits

  1. Step 4 of 4
    FormFree25 min

    Form 2042-RICI — tax reductions and credits

    The annex for the most common tax reductions and credits: employing a home worker (50 %, €12,000 ceiling raised), care of a child under six (50 %, €3,500 per child), aid to deduct, pre-filled Cesu expenses — and the credit computed by the tax authority, excess refunded.

The other paths

A different procedure, the same principle: the three pillars in order.

Read in French