NANNIES PAYROLL COMPANIES
As an employer, if you hire a nanny you will have to pay Tax, National Insurance, and start paying into a pension on behalf of your nanny. In addition, you will need to report PAYE payments to HMRC at the time they are made to your nanny (Real Time PAYE information).
If it is your first time employing a nanny we hope the information here will be of help to you to avoid the potential stress of being an employer.
It is possible to do this yourself, but many families choose to use a payroll service to pay their nanny. But if you would like expert help and advice on payroll issues & nanny costs.
Recommends the following nanny payroll companies:
The UK's original nanny payroll experts with over 20 years experience. They offer a complete service to nannies and families hiring a nanny, providing everything needed to meet HMRC requirements, making the whole process simple and stress free!
Way2paye is an established nanny payroll company offering all clients a friendly and professional service. Doing everything required by HMRC and go that much further in helping you with other payroll issues that may arise.
PRACTICAL NANNY HIRE TIPS
When you hire a nanny full-time in a five-days-a-week position, either permanently or temporarily long-term, the nanny will be entitled to 28 days paid holiday per year, and it's usual for the family to choose when their nanny will take half of these days and then for the nanny to choose when they will take their other half of entitlement.
By working together and giving notice to each other it's often possible to match up very well, as most people choose to take some holiday at Easter, then during the summer, and then again around Christmas time. If the family take further holidays and don't require the nanny to travel with them then they will still need to pay their nanny the usual salary (as the nanny has been hired and is available and willing to work their contracted days/hours, but in this case the employers have chosen to not require any help during their holiday).
Also, it's normally not advisable for families to propose for their nanny to owe back hours in these circumstances. For instance, if a family takes extra holidays and does not require their nanny to travel with them they should continue to pay their nannies salary for the period the nanny has effectively been laid off, as opposed to, say, asking their nanny to make up for the hours when they're back from holiday. A similar example where the nanny may effectively be laid off with full pay is when a relative comes to visit the family and decides to take the children out for the afternoon and the nanny is sent home. This would be the families choice, but the nanny should not be asked to make up those hours at a later stage.
GROSS TO NET
With regard to paying your nanny (permanent or temporary nanny), most nannies tend to talk in terms of net salary - and that is fine. However, when you draw up a nanny contract it's important to convert the agreed net total to an equivalent gross amount. There are many good reasons for converting net to gross, but a good nanny agency will cover all these points with you and simplify the calculation for you. When families hire a nanny in London, any good nanny agency service should also be able to provide up-to-date advice when hiring a nanny, say, on nannies tax and insurance and other relevant nanny employment issues such as Ofsted registration and nanny sharing. Nannies cannot usually present themselves for work as self-employed, so as an employer, when you hire a nanny you will be responsible for ensuring your nannies tax and national insurance is paid accurately. Hiring a nanny in London can be cumbersome, however a good agency will be able to recommend reputable payroll companies.
USE A NANNY PAYROLL SERVICE
If the thought of maintaining payroll on behalf of your nanny makes your head spin, use a payroll service to perform these all these obligations and more, it will save you a lot of time.
At Fulham Nannies we currently recommend the payroll companies Nannytax, and Way2Paye, who for a small annual fee will do all the payroll calculations and provide you with pay slips for your nanny - making the whole process of hiring a nanny a good deal easier. Payroll companies will offer advice on current employment law and keep you up-to-date with any emerging legal requirements such as nanny pensions, enabling you to relax and know that you're performing all employer responsibilities accurately and correctly.