If you’re employing a nanny for the first time, or even if you’ve done it before, trying to get your head around nanny tax, National Insurance, PAYE and workplace pensions can be very daunting, especially as legislation changes all the time.
We aim to simplify the process of managing your nanny payroll and take the stress out of meeting those employer payroll and legal obligations.
When you hire a nanny
It is your legal responsibility, not your nanny’s, to ensure that a PAYE scheme is set up and that your nanny’s income tax and National Insurance Contributions (NICs) are paid on time. You’ll be committing a criminal offence if you don’t do this which could mean a big fine.
Paying your nanny
You must provide your nanny with a payslip every time they get paid. The payslip should show their gross wage, the tax and NI deductions made on their behalf, as well as their net wage. Your nanny should keep their payslips in a safe place, as they act as proof of earnings when applying for credit if they take out a credit card, loan or mortgage.
When you subscribe to paymynanny.net we send you, via email, monthly, fortnightly or weekly payslips showing all the correct deductions. Our service will also manage issues such as Shared Parental Leave (SPL), Statutory Sick Pay (SSP), holiday pay and accruals, overtime and bonus payments.
We handle P45s when your nanny starts work and when he or she leaves, as well as talking to HMRC if there are any issues that affect your PAYE. We will also host HMRC compliance inspections.
You must also provide your nanny with either an employment contract or a statement of the terms and conditions of their employment, within two months of their starting date.
A standard contract is available for an additional fee. The contract can be modified to suit your individual circumstances.
From February 2018 every employer will need to comply with workplace pension duties. This means that if your nanny is over the age of 22 and earns more than £10,000 he or she will have to be automatically enrolled into a pension scheme. Even if your nanny earns less than this you will have duties to carry out and you may even have to set up a pension scheme if your nanny asks to join. We provide two levels of pension management service and can also give help on choosing a pension scheme via our partner at Pension Playpen.