Hiring a day care provider home
Private day care allowance and a municipal supplement to the allowance enable you the possibility to hire a day care provider home alone or with another family. The size of the group of children can be up to four (4) children under school age and one child participating in part-time pre-primary education.
Where can you find a day care provider?
- Employment agency
- By placing a recruitment notice
Private day care allowance and a municipal supplement will be paid to the day care provider. Therefore, the day care provider must submit a tax card to Kela.
- The family pays the difference between the wage and the allowance of the day care provider as well as the statutory employer contributions for the entire wage.
- The private day care allowance and the municipal supplement are child-specific, i.e. the number of children affects the total amount of the allowance.
Family obligations as an employer
More information on employer contributions fees can be obtained from the tax offices and other entities that process employer contributions.
- Payment of the withholding tax to the county tax office is made in accordance with the tax card provided by the day care provider. For more information, refer to the tax administration website under tax instructions and publications (household as employer).
- Social security contributions are paid in accordance with the same timetable and using the same form as the withholding tax, but for the entire wage.
- Pension insurance The employer must arrange statutory pension cover under the Employees Pensions Act (TyEL, 2007) for the day care provider. The payment consists of contributions from the employer and the employee. The employer will deduct from the employee’s wages the employee’s share of the pension insurance premium in connection with each salary payment and account it and the employer’s contribution to the pension fund. More information at www.ilmarinen.fi.
- Accident insurance The employer is obliged to take out accident insurance for its employee. The statutory accident insurance policy is taken from an accident insurance company. The insurance premium varies according to the hazards related to the work.
- Unemployment insurance contribution The unemployment insurance contribution applies to employers who are required to take out accident insurance for employees under the Employment Accidents Insurance Act. The employer’s unemployment insurance contribution is 0.7% and the employee’s 0.34% from the salary (the employer shall withhold it from the salary).