Declarations, CAF, aid or tax credit. These words scare you and you wonder: how can I reduce the cost of my baby-sittings? Don’t panic, Marypop is always there to give you the solutions. Thanks to this article, understand in a few minutes how to declare your baby-sitter, calculate what you will pay and above all, what you will earn.
To help you, we are going to explain you here:
- what you pay in total for your child care
- the aid you can get from the State, the region or your company
- tax deductions
What will I pay when I declare my babysitter?
Here is the formula to calculate what you will pay:
(My babysitter’s net salary + contributions)
This first part is the total of the expenses you will have to pay. To make it simpler, let’s imagine that we calculate the expenses for 1 year of babysitting.
Let’s take a fictitious example: you pay our baby-sitter 10€/hour and you have hired him for 450 hours. The total amount of your baby-sittings will be 450h x 10€/h = 4 500 € this year.
To this, you must add the contributions due on your babysitter’s declaration. To do this, go to www.pajemploi.urssaf.fr
On Pajemploi, all you have to do is fill in all the indicated fields. Attention: please choose “Home childcare” and not “Nursery assistant”.
After carrying out a simulation with the information we have chosen in the previous paragraph, we obtain a fee of 2 904,94€ to be added to the 4 500€ previously collected.
This gives us a total cost of 7 404,94€ over one year.
What help can I get to reduce the total cost of my baby-sittings?
In order to reduce the cost of your baby-sittings, you can benefit from numerous aids.
You can indeed receive aid from your town, your department or even your company. Despite everything, the above possibilities remain very unequal depending on your work or your location. On the other hand, the aid that all parents receive is from the Caisse d’Allocations Familiales (CAF). This aid varies according to the age of the children, the parents’ salary and the contract. To find out the amount of your benefits, you can find out the following information on the website of CAF.
For our example we will take for this year, an average CAF grant of 2 088€ as well as a grant from your company of 500€.
If you add these two grants together, you can deduct 2 588€ from your baby-sittings.
Tax deductions: the calculation to reduce the cost of my baby-sittings or child care
The magic formula for deducting part of your baby-sittings from your taxes is :
(Net amount of my baby-sittings + contributions – aid to which you are entitled) / 2
This rather barbaric formula, I grant you, will allow us to understand everything. Simply put, the tax credit allows you to deduct 50% of the total cost of your baby-sittings. But don’t worry, we’ll come back to that a little further down the line.
The babysitter’s job is part of the service activities and therefore allows you to deduct 50% of the amount paid from your taxes. In other words, the actual amount you will pay for 1 year of babysitting will be half of what you calculated before. If we go back to our calculation and modify the values by those we have defined throughout this article we obtain :
(7 404,94€ in expenditure – 2 088 € in aid) / 2 = 2658,74€
With our calculations we have found that for 450 hours of baby-sitting at 10€/hour, you would have paid around 2 658,74€ or around 5,90€/hour instead of 10€. You no longer have excuses for not declaring a baby-sitter!
I remind you that the example we have given you is fictitious, but represents the advantages you can get back. You can also very well deduct your baby-sittings from your taxes even if they are less recurrent than in our example.
That’s it, the mathematics course is over! We hope we have been able to help you understand how French aid works.
You can of course contact us if you have more questions on the subject. And if you are convinced that you now need a baby-sitter, you can consult the profiles of our super Marypop baby-sitters.
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