Domestic Payroll provides time saving, administration support where you remain the employer (not an agency). Employing a nanny is not difficult but can be time consuming when done correctly. With Domestic Payroll managing your administration and payroll services will improve the employment relationship between your family and the nanny of your choice. Domestic Payroll Gold Services manages all employment regulations to ensure compliance is met on time. From the initial set up for your nanny with associated registrations and insurance, to the ongoing issuing of payroll, quarterly super and tax lodgements and annual payment summaries, Domestic Payroll takes care of everything. Domestic Payroll DIY Services provides a tailored package and manages the initial set up of your nanny and simplifies the process so you manage the ongoing administration of your nannies payroll. To get started, contact us here Client Information Form.
A Withholding Payer Number (WPN) is an ATO issued number. It allows household employers to deduct tax from their nannies pay on behalf of the ATO and used instead of an Australian Business Number (ABN). Domestic Payroll services we will assist you in registering your WPN. Contact us to find out more. Please note: 1. You will already have a WPN if you make quarterly income tax installments to the ATO. Each quarter the tax collected from your nanny and your income tax installment will be lodged to the ATO on the same form. 2. If you already have an ABN as a sole trader, you will need to use your ABN to employee your nanny. The ATO only allows you to have an ABN or a WPN.
The easiest option for paying your nanny is to process their payments as an ABN contractor. However this is not always the correct option, even if your nanny requests to be paid as a contractor, it’s your responsibility as the employer to make sure you are processing payment correctly. The ATO sets out a number of rules which can be used to determine whether a nanny is an employee or a ABN contractor. To confirm if your nanny is an employee or a contractor use the ATO online employer test – you will be asked a series of questions and then given a ruling. Find out more about hiring a nanny here.
- No guarantee of sets hours or an ongoing commitment of available work.
- Employed by the hour or by the day.
- Not entitled to paid sick or annual leave or are paid for public holidays not worked.
- Are paid at a higher rate (casual leave loading) which is set at 25% above their gross hourly rate.
- No notice period required on termination from either side
- The same set hours worked each week.
- Entitled to annual leave, sick leave and paid public holidays. For a full time employee this is 20 days annual leave and 10 days sick leave (part time employees leave is calculated on a pro rata basis).
- Termination notice is required. The minimum period is one weeks notice. Any accrued annual leave is payable on termination.
Nannies working 30 hours or less a week are currently exempted from employer superannuation contributions. However, you can still pay your nanny super if they work under 30 hours a week if you choose to and this is quite common. You are just not legally required to do so. With Domestic Payroll, if your nanny works varying hours we are able to process the super so that it accrues only when over 30 hours are worked. For more information contact us.
Workers compensation insurance is compulsory for all employers and managed by the state governments so the rules, requirements and costs vary from state to state. The insurance is for your nanny only being injured whilst working for you and the only compulsive insurance required – you may want to discuss other insurance options with your existing insurer such as motor vehicle or other damages insurance.
The Working With Children Check (WWCC) is a requirement for anyone who works or volunteers in child-related work. It involves a National Police Check and a review of reportable workplace misconduct. The outcome of a check is either a clearance to work with children or a bar against working with children. If cleared, the check will be valid for 5 years, however applicants are continuously monitored. You can apply online for a WWCC – each state has their own application process QLD , NSW, VIC , SA, TAS, NT, ACT, WA
The Fair Work Ombudsman ruled that nannies and au pairs are covered by the Miscellaneous Award 2010. The Award categorizes employees into four broad levels that are based on their experience and qualifications. Read the full statement issued - Nannies & au pairs – employment status & award coverage