Frequently Asked Questions
When using a payroll service such as NannyPay, you will still be the nanny’s employee. You will liaise directly with the nanny about duties and schedules. But NannyPay will handle the paperwork, processes, and payments required in order to make things simpler for you.
We then use Single Touch Payroll Australia’s secure payroll platforms and customised programmes to ensure you are meeting your employer obligations. These include withholding tax and other deductions, and processing payments to the ATO, before your domestic employee seamlessly receives their net wages to their nominated bank account.
Only a small selection of scenarios allow a nanny to operate under their own ABN. Most nannies in Australia are determined by Fair Work to be employees. For your own peace of mind – and protection against liability – employing your nanny legally is the safest option. Families found paying cash in hand can be required to back pay super and tax, in addition to any shortfall of income to the award rate, plus penalties.
By giving your nanny employment security it also helps them commit to the role and dedicate themselves to helping your family. Paying ‘on the books’ also demonstrates to your nanny that you value them as a professional.
Nannies fall under the Miscellaneous Award, so information on minimums can be found by accessing the Award through Fair Work Australia. Whenever in doubt, just give them a call to chat through any questions you have about the Award rate.
Keep in mind though that nanny industry standards are typically higher than Award minimums, and more experienced nannies will usually expect higher than those just starting out. Nanny quotes can vary greatly so it’s important to understand what your nanny wants as a base rate.
A nanny is typically asked to work for a certain length of time each shift, with duties directed by the parents, to meet a family’s needs. This is in contrast to a contractor who works to complete a particular task and has more flexibility in how it gets done. Employees also have one source of income compared to contractors who work for multiple clients. You can contact the ATO or check their Employee or Contractor Decision Tool to determine the specifics of your situation.
Yes. All employers need to register with the ATO to provide payroll data on behalf of the employee, and also so the ATO can monitor compliance with fair work requirements. Using a payroll service does not relieve you of this, as you will still be the nanny’s employer. However, NannyPay will help you set it all up.
With the introduction of Single Touch Payroll, all employers are required to report payroll amounts to the ATO with each payroll. Additionally, the tax withheld from an employee’s wage must be reported and remitted to the ATO each quarter. Within 14 days of the financial year end, employees must then also be provided with PAYG payment summary and these amounts reported to the ATO. We facilitate all of that.
When a domestic employee works over 30 hours a week with a family, they legally must be paid Super. It is often standard for Super to be offered/asked for in arrangements with less hours as well. We make it easy for you to provide your valued employee with Super and will make quarterly contributions on your behalf to their nominated fund.
In casual employment a worker is paid for the hours they work and receive a casual loading (25% extra on minimum rates) on their wage in lieu of receiving paid time off. Permanent employees accrue paid vacation days, sick days, and are entitled to paid days off for public holidays. Both types of employees have taxes withheld from their gross wage and earn Superannuation in the same manner.
We strongly recommend it! A work agreement/contract in writing helps to make the conditions of the role clear to both the nanny and the family. It is something you might not realise the value of until something comes up during the term of employment, so it’s best to set things up clearly in the beginning. NannyPay offer a contract template with our Premium onboarding service.
Workers compensation insurance (work cover) is a legal requirement for all Australian employers. It’s compulsory to insure your workers against work-related injury or illness. Work Cover policies are offered through selected insurance providers, which are state based.
The costs across each state vary greatly. Every state has a completely different pricing structure so we cannot provide a quote unless we are applying for your policy for you. You can get work cover and find out more by Googling your state based organisations.
Want us to take care of the admin for you? NannyPay offers management options with our payroll packages.