Nannies can either be engaged as employees or independent contractors. We suggest and encourage taking a professional employee arrangement. If employing directly below outlines some of your obligations as an Employer:
Nannies full under the Miscellaneous Award 2010.
Salary and tax: Employers need to provide a tax dec form to the nanny and you must register to withhold tax. PAYG application form provided. You have to provide pay advice records and PAYG payment summaries and submit PAYG tax. To estimate how much tax to withhold each pay period click on the calculator.
Have an agreement in place between you and the Nanny that states working conditions. Mini will provide you with a rough guide agreement contract.
Refer to Fair Work website to ensure your obligations are being met.
Refer to ATO website to ensure your obligations are being met.
Superannuation: Generally, if you pay an employee $450 or more before tax in a calendar month, you have to pay super on top of their wages. You pay super no matter whether the employee is full time, part time or casual. You have to pay super for some contractors, even if they quote an Australian business number (ABN).
Holiday leave and sick leave: There are minimum leave entitlements for full-time and part-time employees which vary from state to state. In QLD all full time employees are entitled to a minimum of 20 days annual leave or pro-rata for the hours/days worked. Part time employees receive the same entitlement on a pro-rata basis. Sick leave entitlement is 8 days sick leave in the first year or pro-rata for the hours/days worked. Refer to the P.A.C.T Calculator to find out more!
Insurance: It’s strongly recommended that you have insurance that covers domestic employees in the event of injury in the workplace (your home). In QLD Household worker insurance is only $50 and covers you for 2 years. Legislation on insurance requirements varies between the different states.
Family car: If the Nanny is going to drive the family car you will need to review your insurance policy.
Kilometer rate: If the Nanny is going to be using their own vehicle the current rate set by Fair Work is 0.78 cents per kilometer.