Employing a nanny to take care of your children can be a difficult time, but there is more to consider than what they are like and whether your little ones like them.
You will become an employer and with that come legal obligations and potential personal pitfalls.
When employing a nanny we advise all our clients to always, always agree a gross nanny salary. This reduces your personal liability for tax code changes across the duration of the employment.
You also need to ensure you are paying the at least the National Minimum Wage.
As part our all-inclusive service, Feather Payroll Solutions can calculate accurate gross to net and net to gross salaries for nanny payroll.
There are a number of situations when employing a nanny that you will need to make statutory payments to your nanny. These include:
As part of our all inclusive package we will calculate these nanny payroll payments for you and help you recover any funds from HMRC.
By law, all employees are required to be enrolled in a workplace pension if they eligible. This means both you, as an employer, and your nanny need to make payments into an approved pension scheme.
Your nanny may opt-out, but they must be given the option to join. Feather Payroll Solutions asses all nanny payroll clients for eligibility and provide pension administration as part of our all inclusive package.
You are responsible for ensuring all monies owed to the HMRC by your nanny is collected through PAYE. This can include underpaid nanny tax.
Variations in tax can be a result of a nanny having two jobs, student loan payments and other taxable benefits.
Feather Payroll Solutions act as your agent with the HMRC, so we are informed directly of any changes in tax codes which affect your nanny payroll.
When employing a nanny they are entitled to a contract detailing all elements of their employment on the day they start with you.
Their contract needs to reflect up to date employment legislation and be drafted by an experienced solicitor.
Feather Payroll Solutions has worked with an employment lawyer to create a template contract which is fully compliant with the most recent legislation. All you need to do is fill in the blanks. Our template contract is just £30.
Quite simply, no, a nanny should not be self-employed.
We go in to more details on the download below, but in summary, this is because for a nanny to be self-employed they need to dictate the hours they work and when they work.
Traditionally, a nanny will be working hours agreed by a family and working predominantly in their home. Therefore the hours and place of work are not flexible.