Payday Super for Nannies: Your Most Frequently Asked Questions Answered

Since the introduction of Payday Super, we’ve spoken to hundreds of families trying to understand what the changes mean for employing a nanny.

While the new rules are straightforward in principle, they raise plenty of questions for household employers who may have never considered themselves “employers” before. 

If you pay your nanny super, you are now required to do so within 7 days of pay day.

Below are the questions we’re asked most often.

Does Payday Super apply if I employ a nanny?

Yes. If your nanny is entitled to super under Australian law the new Payday Super requirements apply regardless of whether you’re a business or a family employing someone in your home.

Many parents assume these changes only affect businesses, but household employers also have obligations when employing a nanny.

In the past, the ATO made exemptions for private employers for things like Single Touch Payroll (STP) due to PAYG registration processing being different from the normal method of lodging under an ABN.  

Payday super has no exception for WPN (withholding payer numbers) or private employers. This has caused some issues with some payroll software providers being unable to facilitate Payday Super without an ABN, something many private domestic employers don’t have. 

Good news for NannyPay customers: we have tailored a streamlined solution to ensure NannyPay Nannies receive their super in line with the new ATO compliance.

Book a call with our team if you would like to know more about how you can outsource payday super obligations to our payroll team.

Do I have to pay Super if my nanny is a contractor or an employee?

If you are employing your nanny on payroll, you must pay their super in line with the new Payday Super requirements.

If you pay your nanny as a contractor, we recommend contacting the ATO to understand if your contractor arrangement requires Super payments to be made in line with the new Payday Super requirements.

Best practice in the nanny industry is that you pay superannuation regardless of whether your nanny is a contractor or an employee.  If your nanny works regular hours, it’s important to consider if they should be an employee.  Unfortunately, there are many cases in the industry when a nanny is incorrectly paid as a contractor.  To understand more if your arrangement should be employed, please talk to the ATO.

What is the difference between Payday Super and Same Day Super?

Nothing.

“Payday Super” is the term used by the Australian Government and the Australian Taxation Office (ATO).

“Same Day Super” isn’t the official name, but it’s a phrase many people use when searching online because it describes paying super at the same time as wages.

Both mean the same thing; all Australian employers are now required to pay superannuation to all employees within 7 business days. 

Can I still pay my nanny’s super quarterly?

No.

Under the new Payday Super rules, super can no longer be paid quarterly. Instead, contributions generally need to reach your nanny’s nominated super fund within seven business days of payday.

How often will I need to pay super?

That depends on how often you pay your nanny.

If your nanny is paid:

• Weekly – super is processed weekly.
• Fortnightly – super is processed fortnightly.
• Monthly – super is processed monthly.

Instead of making four super payments each year, many families will now be making 26 or even 52. This brings additional time and transaction costs that weren’t there before.

I don’t have an ABN. Does Payday Super for Nannies still apply?

Yes.

Many families employing a nanny don’t operate a business and therefore don’t have an Australian Business Number (ABN).

However, your super obligations don’t change simply because you’re a household employer.

Depending on your circumstances, you may instead require a Withholding Payer Number (WPN) to meet your payroll and PAYG withholding obligations.  

Do I need a WPN?

If you are a nanny who employs a nanny and you don’t have an ABN, you can register to lodge and pay PAYG to the ATO through a withholding payer number.

If you’re required to withhold tax from your nanny’s wages, you may need a Withholding Payer Number (WPN). A WPN allows household employers to meet their payroll obligations without registering for an ABN.

If you’re unsure whether you need one, our team can help determine what’s required for your situation, or you should speak with your accountant.

Does Payday Super change how I pay my nanny?

Not necessarily.

Your pay frequency can stay exactly the same.

What changes is how often super must be processed and reported. Many parents who previously managed payroll manually are now finding it much harder to keep up with their obligations each pay cycle.  

Some large payroll software companies are now unable to process Same Day Super for WPN employers due to their set-up process requiring a registered ABN.  With this change impacting most of our customers, NannyPay has built a streamlined process to ensure our WPN holders can still meet their new super obligations.

What happens if I pay super late?

The Australian Taxation Office has rules around late super payments, including the potential for additional reporting requirements, interest, and penalties.

If you’re managing payroll yourself, it’s important to understand your obligations and ensure payments are made on time.

Can payroll software do this automatically?

Some payroll software can manage Payday Super, but many platforms are designed for businesses and require an ABN.

Families employing a nanny often don’t run a business so they often need a WPN instead.

NannyPay specialises in payroll for household employers, making it easy to stay compliant without learning complex payroll systems.  Our team can register you for a WPN and manage your nanny’s same-day super, PAYG and wages in line with ATO compliance. 

Do I need to do anything before employing a nanny?

If you’re planning to hire a nanny, it’s worth setting up your payroll correctly from the beginning.

This may include:

• Registering for a WPN (if required)
• Discussing how to manage pay for a domestic worker (often not tax deductible) with your accountant
• Setting up PAYG withholding with the ATO
• Understanding super obligations and how to lodge it with a super clearing house
• Issuing compliant payslips
• Meeting Single Touch Payroll (STP) reporting requirements

Getting everything in place early can save a lot of stress later.

Still Have Questions?

Payday Super for Nannies has changed the way families employing a nanny manage payroll, but it doesn’t have to make things more complicated.

At NannyPay, we specialise in payroll for household employers, helping families manage tax, super, WPN registration, STP reporting and ongoing payroll compliance.

If you’re unsure what applies to your situation, we’d be happy to help.