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You’ve found your perfect nanny. Congratulations! Now what??

A NannyPay blog.

In most nanny-family relationships, the nanny will meet the criteria to be an employee. Hiring a nanny is not as simple as just transferring cash. Some parents will already be set up with the tools and know-how to process a nanny’s payroll but if you aren’t, don’t panic! NannyPay can help you meet all of your employer obligations. Click here to see what our packages cover.

But why? Why bother paying the money for a payroll company to do it? 

Setting up payroll for a domestic employee can be confusing and any mistakes made in meeting obligations could come back to bite you. At NannyPay, our expertise is in understanding the obligations of the Miscellaneous Award and the entitlements, and standards for the nannies that fall under it. Using a specialised payroll service who understands the nanny industry makes it so much simpler for your family, and gives you and your nanny peace of mind to know that every step is done correctly. 

Employing a nanny requires you to meet legal minimum pay rates, withhold and contribute tax, calculate and manage leave entitlements, understand when you must (and should) pay Super, provide your nanny and the ATO with the correct documentation, and ensure you hold the right insurance. Every nanny role is unique, with the number of hours, the duties, and the schedule depending on what each family needs. Therefore each engagement involves custom set up to make sure the employment arrangement is both legal and fair.

But why? Why pay legally at all?

The simple answer is because it’s the right thing to do. Employing legally ensures that your nanny receives the benefits and standards that each nanny employee is entitled to receive. Knowing that you have met your employer obligations ensures that your family will be protected from future strife if the working relationship turns sour or changes. By meeting your obligations you will minimise the chance of running into trouble if your nanny is injured on the job or works in an unsafe manner.

Nannies care for a parent’s most precious people – their children. Many have undertaken costly study or put in years of experience. All good nannies put their love and care into the work they do, and all deserve to receive their legal entitlements for the important role they play in supporting families. These include a fair and legal wage, reasonable hours, superannuation, and often paid leave. Nannies also deserve the security that employment offers. A domestic employee who is treated well and given recognition of the validity of their job will typically stay in a role longer and provide an even better service to their families.

Ok, but why does it matter if the nanny is happy to receive cash?

Even if a nanny agreed to work for cash in hand or as a contractor, if in the future they are deemed to have met the criteria to be an employee the family might be required to back pay taxes, overtime, untaken leave, and penalties. This can be a costly and upsetting shock for families who didn’t understand what their obligations were when they hired a domestic worker.

Also, nannies talk. The community and awareness about the nanny role in Australia is growing, and nannies learn through formal professional development and through networking casually with others. Younger nannies are being mentored by experienced members of the industry. Allow us to do that for you. At NannyPay we understand the nanny industry through our experiences working within it, and keep up to date with the latest requirements and standards. This means there is less you need to worry about, and you can focus on building that amazing working relationship with your children’s caregiver.

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