Most families don’t realise that employing a nanny can mean becoming an employer.
We’ll help you understand what applies and get it set up properly.
No pressure. Just clear guidance on what applies to your situation.
Hiring a nanny isn’t just a private arrangement…
In most cases, when you hire a nanny in Australia, they are considered an employee.
That means the responsibility doesn’t sit with them, it sits with you.
That can mean you need to:
- Withhold PAYG tax from wages
- Report payments through Single Touch Payroll (STP)
- Pay superannuation
- Provide payslips
- Meet Fair Work requirements
For many families, this is the point where it shifts from “paying someone privately” to running payroll.
What happens if it’s not set up properly?
Many families don’t realise these obligations until later.
If things aren’t handled correctly, it can lead to:
- Back payment of tax or super
- ATO penalties or interest
- Issues with Fair Work
- Back payment of wages if minimum standards aren’t met
Even paying in cash doesn’t remove these obligations.
What you actually need to get right:
While it sounds complex, it comes down to a few key things:
- Setting up payroll correctly
- Managing tax and super obligations
- Paying your nanny in line with regulations
- Keeping accurate records
Most families don’t know where to start, and that’s completely normal.
How can NannyPay help?
NannyPay isn’t just software.
We guide you through what applies to your situation and manage the entire process so everything is set up properly from the start.
That includes making sure your tax and super obligations are handled correctly, your payroll is structured the right way, and everything is reported in line with Australian requirements. We stay across the ongoing side of things too, so you’re not left trying to manage it yourself.
What makes NannyPay different is who’s behind it.
We’re a team of career nannies and qualified accountants, combining real industry experience with financial expertise. That means you’re not relying on a generic system or trying to piece things together on your own. You’re getting clear, practical guidance from people who understand how nanny employment actually works in real households.
Every arrangement is different, and we treat it that way.
We’ll walk you through exactly what applies to your situation.
We are your certified nanny payroll experts
Frequently Asked Questions
Do I have to pay my nanny’s superannuation?
If your nanny works over 30 hours a week with your family, you legally must be paying your nanny superannuation.
In an increasing number of arrangements, superannuation payments are also considered when your nanny works less hours.
We can pay your nanny’s superannuation as a quarterly contribution to their chosen superannuation fund for you.
Why is my nanny an employee instead of a contractor?
A contractor works to complete a certain task with flexibility around how this is done, whereas a nanny typically works for a certain length of time in scheduled shifts while completing specific duties to meet a family’s needs.
Unsure where you and your nanny fit in? We recommend consulting the ATO‘s information to confirm you are paying your nanny the right way.
How do I know how much to pay?
Nannies fall under the Miscellaneous Award. In saying that, nanny industry standards tend to be higher than Award minimums. More experienced nannies will also usually expect higher pay than those just starting out.
Many factors influence what you pay your nanny. Because nanny pay rates vary greatly, it’s important to have that conversation with your dream nanny.
Why should I employ my Nanny?
Most nannies in Australia are determined by Fair Work to be employees with only a small selection of scenarios allowing a nanny to operate under their own ABN.
For your own peace of mind – and protection against liability – employing your nanny legally is the safest option.
Paying your nanny cash in hand can see you having to back pay super and tax in addition to any shortfall of income to the award rate and penalties.
Giving your nanny employment security helps them commit to the role and your family.
Do I have to register with the ATO to employ my nanny?
Yes. As an employer, you need to register with the ATO to lodge payroll data on behalf of your employee. This also helps the ATO monitor compliance with Fair Work requirements.
Using a payroll service such as NannyPay still makes you the nanny’s employer.
Luckily for you, NannyPay can help you set all that up.
What ATO obligations does NannyPay handle on my behalf?
NannyPay handles all your ongoing ATO obligations for you. We:
- Report payroll amounts to the ATO with each payroll
- Report and remit tax withheld from your employee’s wage each quarter
- Provide your nanny with a PAYG payment summary within 14 days of the financial year end and report these amounts to the ATO.
What does it mean to employ a nanny using a payroll company?
Payroll services such as NannyPay will handle all the paperwork, processes and payments to make paying your nanny simpler for you.
You will still be your nanny’s employer and liaise directly with your nanny when it comes to duties and schedules. Just without the hassle of the payroll logistics!
What is work cover insurance and how do I get it?
Workers compensation insurance (work cover) is a legal requirement for all Australian employers.
Work Cover policies are offered through selected state-based insurance providers with the costs varying greatly from state to state.
Want us to take care of the admin for you? NannyPay offers management options with our payroll packages.
Do I need an employment contract with my nanny?
We strongly recommend it!
A written employment agreement helps not only to outline what you are paying your nanny, but makes the role and responsibilities clear to both the nanny and the family.
It’s a document you often won’t value until a situation comes up down the track. So it’s best practice to set things up properly from the beginning.
Our NannyPay employment contract template is included in our Premium onboarding service to make your life easier.
What’s the difference between casual employment vs permanent employment?
In casual employment, a nanny is paid for the hours they work and receives a casual loading 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 casual and permanent employees have taxes withheld from their gross wage and earn superannuation in the same manner.
NannyPay can help you understand how paying your nanny as each type of employee affects your overall cost.
Jen
NannyPay customer for 4 years.
NannyPay has been amazing for my career. The team helped my family pay me correctly and on time which means less financial stress for me. I am able to keep track of my hours and pay online where I can find all my timesheets and payslips in one place. Thank you for such a smooth service.
James & Kate
NannyPay Customers for 4 years.
We found NannyPay to be an easy, stress-free way to pay our Nanny.
They take care of all the admin and are
super responsive to any questions we have.
I would highly recommen NannyPay for any busy working families looking to pay their nanny by the books.
Matt and Sarah
NannyPay customer for 6+ years.
We’ve been using NannyPay to take care of payroll, tax and super for our nannies for over two years now. The service has been great at taking the hassle out of making sure we’re doing all the right things legally and looking after our nanny.Using NannyPay is a great way to make paying your nanny as easy.
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Melbourne-based, servicing Australia-wide across Sydney, Brisbane, Adelaide, Perth and beyond.
Contact us
payroll@nannypay.com.au