Your Complete Guide to Using a Nanny Payroll Supplier

A key driver behind your decision to use a nanny payroll service is likely to be the time you’ll save. If so, you’re not alone because, along with an assurance of tax compliance, it’s why so many customers say they want to team up with us.

Using a nanny payroll service from the outset is advisable. That’s because, if you do the job yourself and take your eye off the ball, you could inadvertently create costly problems.

So, what factors should influence your choice of nanny payroll provider? What further steps should you take? Read on for the lowdown.

How to Select Your Preferred Nanny Payroll Supplier

Given the main reasons for wanting to outsource your nanny payroll, the best advice would be to go for a provider who offers end-to-end solutions. That means choosing a supplier who’ll manage every aspect of the payroll process and not just part of it.

The last thing you want is to be looking over your shoulder in case there are important details that have slipped through the net. Part of the benefit of using a nanny payroll service should be that busy parents (and nannies) can relax and get on with their lives.

So, always check carefully about what exactly a potential nanny payroll provider includes in their range of services. Value for money is important. It can also sometimes be subjective because the cheapest option may not always be the best.

Here are a few questions to ask yourself:

●     Does the payroll service include everything from payslips to tax deductions?

●     Is the service good value for what I’m going to be paying each month?

●     Will there always be support on hand from the supplier as standard?

●     Do I feel relaxed about asking burning questions and getting straight answers?

●     Has the provider the right experience and expertise in the nanny payroll field?

●     Will my nanny be happy with the service?

●     Ultimately, will I feel confident that all my nanny payroll needs are getting sorted?

If you use Pay The Nanny, the answer to all those questions will always be a big, fat resounding, “Yes!”

Using a payroll service is a smart move. We’ve seen plenty of unfortunate hard-pressed families who didn’t make that choice. They went on to incur costly fines, tax and unpaid leave bills as well as extra professional fees to sort everything out.

Getting Started With Your Nanny Payroll Supplier

We recognise that for lots of new families the very concept of treating a nanny as an employee, along with the formalities that come with that, can come as a surprise. Our job is to make the whole process simple and pain-free.

In order to help you through it all, here’s an outline of the initial steps you’ll need to take.

Initially, engage with your provider as quickly as possible. It’s natural to have plenty of questions. Whatever they are, it’s highly likely that we’ll have heard them before and will therefore have the experience to reassure you and point you in the right direction for whatever you need.

The contract you have with your nanny is really important and you can read more about that further on.

The first thing we ask you to do is to fill in our online onboarding, sign-up form. You’ll need to collect some important pieces of information, but, once you have these, the whole process should take no longer than 10-15 minutes.

This is what we’ll need from you:

• The contact and banking details of your nanny so that we can pay them
• Your nanny’s TFN number and Superannuation details
• Key details of your employment contract

You will also need to set up a direct debit with us. It’s always worth making a note of when we will take the payments so that you’re certain there will always be sufficient funds available. This is vital so that the whole process functions without any hitches.

What Happens Next?

Once you’re ‘good to go,’ the rest is really straightforward. Your nanny’s completed weekly timesheets will get submitted and you can leave the rest to us. We’ll do all the calculations, send you a summary and pay your nanny.

Sometimes, timesheets are not always necessary. In these cases, things are even easier and all you’ll need to do is to let us know of any changes, if there are any, to your nanny’s hours in a given week.

We’ll take care of any leave, sick or holiday pay dependencies as well. The bottom line is that we will ensure your nanny gets accurately paid on time, every time. Job done!

One last detail: Pay The Nanny uses an online payroll software called Invoxy, an easy-to-use payroll system that's accessible from both a desktop or a mobile device.

We include the cost of this programme in our monthly fees.

Nannies can use Invoxy to log their timesheets each week. They’ll also have access to all their leave balances and all their payslips, not just the most recent ones.

Both you and your nanny will always be able to check how much leave they have taken and how much they have left. Nannies can also apply for leave through the online platform. This helps to make tracking leave even simpler.

We are also able to offer you advice about your nanny’s leave and public holiday entitlements along with the impact a particular work pattern might have on these. 

The Importance of the Signed Contract

Once you’ve established that your nanny has the right to work, you should draw up a contract for them to sign. This should manage the expectations of both parties and there needs to be complete clarity. 

The contract is probably the most complex part of the admin process for parents when they’re outsourcing their nanny’s payroll. But, once it’s done, it’s done. Here are some of the fundamentals:

• The number of hours your nanny is to work
• The duties you expect your nanny to perform
• Their salary, including rates for weekends, public holidays and overtime
• Their leave, sick pay and holiday pay entitlements
• Relevant notice periods related to overtime and contract curtailments
• Specifics of insurance connected with the workplace and a vehicle, if applicable

It’s vital that both you and your nanny sign the contract. We can point you to drafts that are free to download.

The Boring Bits

Most people are happy to do what it takes to get the nanny payroll process up and running with us and then leave it at that.

If you have time though, it’s worth just understanding the basics of what’s going on underneath the bonnet. Here’s a quick summary.

When you use Pay The Nanny, we become the “Tax Employer” of your nanny. That means we take on all the responsibility for calculating, deducting and paying the necessary taxes to the ATO.

A trust account holds any taxes and superannuation we collect until they are required to be paid. We do undertake audits of this trust account from time to time.

We also collect the right amount of Workers Compensation Insurance contributions on every pay run. This amount differs depending on what

In a nutshell, you’re really out of the equation when it comes to the actual administration of your nanny’s payroll. We take on the mantle for you. That means you can relax knowing that, when it comes to the ATO or Workers Compensation, the buck stops with us and not you.

Pay The Nanny Comes at a Highly Competitive Price

Our monthly fees are comparable with DIY software solutions that are available ‘off the shelf.’ When you consider the level of support and peace of mind that Pay The Nanny is able to offer, it makes us a very cost-effective alternative.

We have a team of highly experienced and qualified experts who manage the whole nanny payroll process for you.

They’re also on hand to give you advice. There’s no extra charge for this. Both you and your nanny are free to email or phone us with any pressing questions you might have at any time.

Pay The Nanny, therefore, comes with all these key benefits:

• Highly competitive rates
• Assurance of compliance with ATO, Workers Compensation and Superannuation rules and regulations
• Modern Award interpretation
• Fees are inclusive of all software provided
• The ability to track leave and see payslips, past and present, online
• Efficient outsourcing of all issues related to pay, sick pay and leave
• More time to spend with the family and less worry about sorting admin
• A professional service that will add to your nanny’s sense of value
• Back-up help and advice about any issues related to paying your nanny

Sign up with Pay The Nanny Today!

Our mission is to make life simpler for busy families who need to manage the payroll of their nannies and domestic employees.​

When you use Pay The Nanny, you’ll have total reassurance that you’ll always be 100 percent compliant. You’ll also have more time to relax and spend with your family.

Make your life a little easier by outsourcing your nanny payroll needs to us. Get in touch with us now and join up with Pay The Nanny today!