Why New Zealand Accountants Should Refer Nanny Payroll Clients to Pay The Nanny | Pay The Nanny [ ![Pay the nanny logo](https://assets.paythenanny.nz/images/logo-white.png) ](/) [Parents](https://paythenanny.nz/For-Families) [Nannies](https://paythenanny.nz/For-Nannies) [Agencies](https://paythenanny.nz/for-agencies) [Pricing](https://paythenanny.nz/pricing) [Contact](https://paythenanny.nz/contact) [Sign Up](https://paythenanny.nz/signup) [Log In](https://paythenanny.nz/app/login) Article ------- Why New Zealand Accountants Should Refer Nanny Payroll Clients to Pay The Nanny =============================================================================== By Mark Hudson · 26 May, 2026 When a long-standing client casually mentions they've taken on a nanny, the conversation that follows is rarely as simple as either of you expected. Here's why a referral often beats trying to fold household payroll into your normal workflow. ![Why New Zealand Accountants Should Refer Nanny Payroll Clients to Pay The Nanny](https://assets.caresies.io/articles/2520/conversions/5UwuQvYpYfOteIqsYtBF-webp-featured.webp) "We've got a nanny starting next week" is usually the start of a much longer conversation ----------------------------------------------------------------------------------------- Most clients raise it as an aside. The kids' school hours don't quite work, one parent's gone back full-time, or a grandparent who'd been helping out has moved cities. They've found someone, agreed on a rate, and now they're checking in because something about it feels like it might be a payroll question. It is. Usually more so than they realise. Inland Revenue treats most nanny arrangements as employment. That brings PAYE, KiwiSaver, ESCT, ACC, payday filing, payslips, the Holidays Act, employment agreements and proper wages and time records into play. Not every one of those will apply to every family, but enough of them will to make this a proper payroll setup rather than an informal arrangement. The question for the firm isn't whether the client needs help. It's whether you want to be the one running it. The IR56 question comes up a lot -------------------------------- A small number of nannies in New Zealand are IR56 workers, meaning they handle their own PAYE directly with IRD as private domestic workers. That arrangement is narrower than people assume, and Inland Revenue is fairly specific about when it applies. Some nanny arrangements do meet the criteria of being able to be paid as an IR56. It sounds great on paper, as the nanny is then responsible for having to manage all the tax and admin. However, it's actually a lot for a nanny to take care of. They just want to get on with looking after your children and doing their job, not having the burden of tax and administration. That's where something like Pay The Nanny helps. Even if a nanny meets the definition of an IR56 payer we can help reduce the admin for both families and nannies. We take care of all the tax so the family only makes one payment but the nanny has all their tax and admin taken care of. Employee or contractor is the other recurring one ------------------------------------------------- The instinct to [pay a nanny on invoice](https://paythenanny.nz/articles/should-your-nanny-be-a-contractor-or-an-employee) is strong, particularly when the nanny offers to invoice themselves. Employment New Zealand and the courts look at the real nature of the relationship rather than the label on it. Direction, integration, the use of the family home as the workplace, regular hours, and the personal nature of the work all push toward employment. It's the kind of advisory moment where a five-minute conversation can save the client a great deal of trouble later. Most of the time, the right answer is to set things up properly as employment from the first pay. PAYE, KiwiSaver and ACC each have their own quirks -------------------------------------------------- Payday filing has been the norm since 2019, so each pay event needs to be filed with IRD. KiwiSaver brings minimum employer contributions and ESCT, plus the question of whether the nanny is opted in, opted out, or on a savings suspension. ACC levies sit quietly in the background until the invoice arrives and surprises someone. None of this is unusually hard. It's just unfamiliar territory for a household that's never run payroll before, and unfamiliar work for a firm that's geared toward SME compliance rather than one-employee household engagements. The Holidays Act is where families quietly come unstuck ------------------------------------------------------- The [Holidays Act](https://www.employment.govt.nz/assets/uploads/documents/leave-and-holidays/holidays-act-2003-guidance.pdf) is famously fiddly even before you put it in a household context. Four weeks of annual leave, ten days of sick leave since the mid-2021 increase, bereavement and family violence leave, public holidays paid on the right basis, and the "otherwise working day" test for nannies whose hours vary week to week. Pay as you go holiday pay sounds tidy and gets used more than it should. It's only available in narrow circumstances, generally certain fixed-term or genuinely irregular arrangements, and it doesn't suit most ongoing nanny roles. These aren't questions a busy parent wants to work through at the kitchen table on a Sunday night. They're also not especially enjoyable to answer over email at 6pm on a Friday. Why referring tends to work out better for the firm --------------------------------------------------- Small household payrolls are slow, fiddly and not especially profitable. Even when the client is otherwise high-value, the nanny piece tends to chew up disproportionate admin time. A [referral](https://paythenanny.nz/for-agencies) keeps the relationship warm without dragging the team into low-margin work that sits outside your normal scope. It also avoids the awkward position of being asked employment law questions that genuinely belong with an employment lawyer. How Pay The Nanny fits in ------------------------- [Pay The Nanny](https://paythenanny.nz/for-agencies)is built for New Zealand families employing nannies and au pairs. We handle PAYE, KiwiSaver, ESCT, payday filing, payslips, leave tracking, ACC guidance, and the steady stream of practical questions that come up between pay runs. We're a payroll and compliance service rather than an employment law firm, and we'll always send a family to proper legal advice when the situation calls for it. On the day-to-day payroll side, this is what we do. When to send a client our way ----------------------------- Refer when a client is hiring a nanny or au pair, when they're unsure whether the arrangement is employment or contracting, when they're asking about PAYE, KiwiSaver, leave or payslips, or when they've vaguely asked your firm to "just look after the nanny pay." Sooner is easier. Setting it up properly before the first pay is a much smaller job than unwinding several months of cash payments later. If your client is hiring a nanny in New Zealand, send them to [Pay The Nanny](https://paythenanny.nz). [ ![](https://assets.caresies.io/articles/2315/conversions/v9x4n2aokeqNyDTVK1dY-webp-featured.webp) ](https://paythenanny.nz/articles/pay-the-nanny-for-nannies)By Mark Hudson · 16 October, 2025 ### [Why Nannies Love Pay The Nanny (and How You Can Earn $50 for Referring a Family)](https://paythenanny.nz/articles/pay-the-nanny-for-nannies) If you’re a nanny in New Zealand, Pay The Nanny makes your working life easier. From payslips and tax to KiwiSaver and leave, we handle the details so you can focus on what you do best - caring for kids. And yes, we’ll even pay you $50 for referring a family! [Read more...](https://paythenanny.nz/articles/pay-the-nanny-for-nannies) [ ![](https://assets.caresies.io/articles/2506/conversions/sCR7KciKZFh3b3stU8Oz-webp-featured.webp) ](https://paythenanny.nz/articles/how-much-does-a-night-nanny-cost-in-new-zealand)By Mark Hudson · 08 May, 2026 ### [How Much Does a Night Nanny Cost in New Zealand?](https://paythenanny.nz/articles/how-much-does-a-night-nanny-cost-in-new-zealand) Sleep deprivation and newborn life often go hand in hand, which is why more Kiwi families are turning to night nannies for extra support. But how much does a night nanny cost in New Zealand in 2026? Here’s what parents should know about overnight nanny rates, what impacts pricing, and how payroll and employment obligations work. [Read more...](https://paythenanny.nz/articles/how-much-does-a-night-nanny-cost-in-new-zealand) [ ![](https://assets.caresies.io/articles/570/conversions/kp3hCu3p2TPnt8mqWnCi-webp-featured.webp) ](https://paythenanny.nz/articles/pay-rates-for-nannies-in-2022)By Mark Hudson · 10 March, 2022 ### [Pay Rates for Nannies in 2022](https://paythenanny.nz/articles/pay-rates-for-nannies-in-2022) Wondering how much to pay your nanny in New Zealand? Our 2022 guide breaks down average hourly rates, regional trends, and the extra costs employers should consider. Learn how to stay compliant and simplify payroll with Pay The Nanny’s expert support. [Read more...](https://paythenanny.nz/articles/pay-rates-for-nannies-in-2022) [ ![](https://assets.caresies.io/articles/530/conversions/jcoFC2Kt7hdhM5U2QqPT-webp-featured.webp) ](https://paythenanny.nz/articles/how-much-should-i-pay-a-nanny-in-new-zealand-in-2024)By Mark Hudson · 19 February, 2024 ### [How much should I pay a nanny in New Zealand in 2024?](https://paythenanny.nz/articles/how-much-should-i-pay-a-nanny-in-new-zealand-in-2024) Wondering how much to pay your nanny in 2024? This guide breaks down updated New Zealand nanny pay rates, regional averages, and employer obligations plus how Pay The Nanny can handle payroll, taxes, leave, and KiwiSaver to make life easier for busy families. [Read more...](https://paythenanny.nz/articles/how-much-should-i-pay-a-nanny-in-new-zealand-in-2024) [ ![](https://assets.caresies.io/articles/552/conversions/DtoXj8tLIM6D4Cpe5KqL-webp-featured.webp) ](https://paythenanny.nz/articles/2023-nanny-pay-rates-guide-for-new-zealand)By Mark Hudson · 14 April, 2023 ### [2023 Nanny Pay Rates Guide for New Zealand](https://paythenanny.nz/articles/2023-nanny-pay-rates-guide-for-new-zealand) Not sure what to pay your nanny in 2023? This updated guide covers minimum, average, and city-based nanny pay rates across New Zealand—plus what costs to expect as an employer and how Pay The Nanny can help you stay compliant without the stress. [Read more...](https://paythenanny.nz/articles/2023-nanny-pay-rates-guide-for-new-zealand) ![Pay the nanny](https://paythenanny.nz/images/logo-white.png)Join Our Community Stay in the loop! Subscribe to receive the latest updates, exclusive content, and special offers straight to your inbox. 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