For casual and temporary services provided through Shoalhaven Nannies we hire individual contractors for these short periods of work which are often seasonal and our carers may have other jobs during the day. Employing a nanny may prove to be a more sensible and convenient option for childcare for your family however there are some obligations that need to be met.
The Individual Contractors have their own ABN number and take care of their own obligations. However for Permanent Positions which could be full-time or part-time then you as the engager of Services can become the employer if you would like.
You are required by law to register with the Australian Taxation Office and to enter the PAYG system to withhold tax from your nanny or home carers wage.
- Call the ATO business line on PH: 132866 or go to www.ato.gov.au (For Businesses)
- Register for PAYG withholding” Under Pay As You Go (PAYG) withholding, you may be required to withhold amounts from payments you make to your household employees, such as nannies or housekeepers. The amounts withheld are sent to the Australian Taxation Office (ATO);”
- Apply for registration online or have the forms sent to you
- Your employee needs to complete a Tax File Number Declaration form
- Calculate the amount of tax to be withheld using the Withholding Tax Table (supplied by the tax office)
- Complete an activity statement quarterly and send the amount withheld to the ATO
- Provide your employee with a PAYG Payment Summary – Individual Non Business, by July 14 each year according to the Australian Taxation Office:
If a car is provided for the use of the nanny, it is the employer’s responsibility to provide full insurance coverage. If the nanny is to use her own vehicle as a condition of employment, an allowance of approximately $0.55 per kilometre for petrol and running costs applies over and above the agreed wage. Please note that the type of vehicle the nanny drives determines the exact kilometre rate. These rates are available from the NRMA and the Australian Taxation Office.
According to the ATO, “You don’t have to make superannuation contributions for some employees. These include employees who are:
- paid less than $450 in a calendar month;
- aged 70 years of age and over;
- under 18 years of age and working not more than 30 hours a week;
- covered by a Bilateral Superannuation Agreement; or
- performing work of a domestic or private nature for not more than 30 hours a week e.g. Part-time nanny or
- housekeeper for a non-business employer.”
In all other cases, you must make superannuation contributions on behalf of your employee.
For further information on your obligations as an employer of household workers go to Superannuation Obligations –
We highly recommend a workplace agreement which highlights both parties’ expectations of the following:
Weekly or hourly pay rate, car allowance if applicable;
- tax, superannuation and work cover insurance;
- days, hours of work – start and finish times;
- specific duties and any additional duties;
- overtime rates for working outside set time;
- annual recreation leave, sick leave, special leave, pay on public holidays etcetera;
- conditions of salary review
- conditions of termination.
A Model Contract Sample is available from the Nanny Agencyfor all registered families
WorkCover – Domestic Insurance
Household worker insurance is indispensable if you engage people to be employed in your home. You are required by law to provide Worker’s Compensation for your employee whilst working for you in your home if you pay more than $7,500 a year in wages. This is not always covered by your Home and Contents Insurance so you will need to check with your insurance company.
All insurance companies vary in price, but expect to pay between $17 to $60 per annum. Each state has different regulations regarding work cover so please inquire with your state’s WorkCover body first.
Child Care Benefit
The Child Care Benefit (CCB) is a payment to help families who use ‘approved’ or ‘registered’ care. To be eligible for Child Care Benefit you need to meet all of the following:
- use approved or registered child care
- you are responsible for paying the child care fees for your child
- your child is immunised (or on an immunisation catch-up schedule) or is exempt from the immunisation requirements
- meet the residency requirements
Shoalhaven Nannies are individually registered through the Family Assistance Office and can provide receipts for work related care to claim the Child Care Benefit. Nannies fall under the ‘registered care’ category when it comes to the Child Care Benefit.
For more information on registered carers, visit Family Assistance or call 13 6150 or visit http://www.humanservices.gov.au/customer/services/centrelink/child-care-benefit