Pay The Nanny is a privately owned and operated payroll provider with offices in Australia and New Zealand.

Our team includes certified CAs, financial and taxation specialists who help households make it simple to hire and manage nannies and domestic helpers.

Our goal is to make it simple, easy and hassle free for households to be able to hire nannies and domestic workers.

No. We are not a Recruitment Agency, so we do not source or place nannies with any households.

We are a payroll provider and we only manage the payroll for nannies after they have been found, either directly or through an agency.

We have offices located in Melbourne and Wellington but we also operate in the cloud, meaning that we provide payroll services to nannies all over Australia and New Zealand. We provide email and phone support throughout both countries. 

Signing up is super simple. You can complete the online form here.

There's a bit of information you'll need to collect from your nanny and have handy before you beging the form (such as TFN numbers, bank accounts, & super details).

Once you've completed the form, we'll get you setup in our system and send through a confirmation email along with further details.

We sure do, we have a mobile app that families and nannies can use in both NZ & AU for their payroll.

To check it out, download it via the links on the app or play store.

Play store:  here

App store:  here

Generally, no. This is a common misconception which often confuses many employment relationships and can lead to a household not meeting their legal obligations as an employer with potentially severe repercussions for non-compliance. 

ATO have guidance on the difference between a contractor versus an employee. It is very rare for a Nanny to meet the criteria of being a contractor. For example, Nannies are paid an hourly rate for the time they work and have little independence over when they work, their hours or their duties.  

For more information please visit ATO’s Difference between employees and contractors

No, we don’t become the employer. When you hire a nanny then you will still be the employer of that Nanny but Pay The Nanny does become the employer of record for the purposes of the ATO.

Effectively, we act as a co-employer of your nanny. You'll still need to ensure you remain compliant with relevant employment legislation but Pay The Nanny will assume the responsibility and liability of filing and paying necessary taxes and employer contributions.

For the purposes of the ATO, Nannies will become the “tax employees” of Pay The Nanny. This means we will assume the obligations of making sure that employers have calculated and paid the correct amount of taxes. 

Casual employment is generally considered under the Fair Work Act as a job with no commitment of ongoing work or an agreed pattern of work. An employment relationship with a nanny who works on an ad hoc, or as required basis, would generally be considered casual. This may mean their hours are irregular and change week-to-week or that there is no expectation of work during certain times of the year (i.e., school holidays).  

Permanent employment is when your Nanny has ongoing employment and usually work regular hours each week. Permanent employment can be either full-time or part-time, dependant on their average hours worked each week, although both types have the same entitlements.  

Whether your employment relationship with your Nanny is casual or permanent determines what their entitlements are as an employee.  

Casual employees don’t get sick leave or annual leave. However, they are entitled to a ‘casual loading’ which is paid on top of their hourly wage to cover this. The current casual loading rate is set at 25%.  

Permanent employees do not get a casual loading rate and are only paid their ordinary hourly wage. However, they are entitled to sick leave and annual leave.  

If your Nanny is permanent they are entitled to the following leave entitlements: 

• Four weeks paid annual leave  
• Ten days of paid personal leave (also known as sick leave) 
• Two days of paid compassionate leave for each allowed occasion 
• Two days of unpaid carer’s leave 
• Payment for not working on a Public Holiday (if your Nanny would normally work on this day) 

Calculating the correct amount payments of annual leave that your Nanny is a difficult process with it being all too easy to under or overpay them. This is especially the case with the nature of work your Nanny carries out as even if they are a permanent employee, their hours can and are likely to vary, further complicating things. 

At Pay The Nanny, we calculate this on your behalf to ensure your Nanny receives their correct entitlement of annual leave pay. We do this by making all the necessary calculations and adjustments to accurately determine how much annual leave your Nanny is entitled to. In doing this, we take into account factors such as ordinary hours worked, regular working days and superannuation/tax implications so that you can meet your obligations as an employer.  

With each payroll we process, Pay the Nanny will calculate the correct amount that needs to be paid to the ATO. 

Those amounts, along with the amounts to be paid to your Nanny, will be direct debited from your nominated account. 

Basically, once you've paid us - there's nothing more to worry about.

At Pay The Nanny, we take great pride in ensuring we remove the risks associated with households employing nannies. For tax purposes, relationship is kept between Pay the Nanny and the ATO for tax purposes which takes the risk away from our clients. 

We also look after Superannuation payments, to ensure everyone is compliant and quarterly payments are being made. We'll also ensure that you're covered for workers compensation.

Basically, we're an end to end service and we've got you covered on all aspects of compliance!

We strongly advise that you have an employment contract signed by both yourself and your Nanny. The contract should clearly outline the terms of their employment, their type of employment and any additional responsibilities or contingencies which may become relevant during the term of your Nanny’s employment. 

We understand this can sometimes seem overwhelming so, at Pay The Nanny, we are happy to offer an employment contract template helping begin your employment relationship with your Nanny on the right terms! 

PAYG or ‘pay as you go’ is a federal income tax that needs to be filed and paid on behalf of your Nanny with each payroll. PAYG is deducted from your Nanny’s wages and we pay this directly to ATO to ensure that you and your Nanny meet their tax obligations.  

Medicare is Australia’s universal health insurance scheme which guarantees all Australians access to a range of health and hospital services at a low cost.   

Medicare levy is paid by employees and it's collected from nannies in the same way as income tax. 

Generally, the pay as you go amount which an employer withholds from their nanny's salary or wages includes an amount to cover the Medicare levy. The ATO calculate a nanny's actual Medicare levy when they lodge their income tax return.

Nannies are classified as domestic workers, meaning there isn't a statutory requirement to pay Super if your Nanny works less 30 hours a week. 

However, even if your nanny works less than that, you can still elect to make employer contributions and do we encourage employers to do this (but only if it's feasible).

If your nanny works more than 30 hours p/week then you will be required to make compulsory employer contributions to your nanny's super.

The current rate for Super is set at 10% (although it's set to increase to 12%) and, if applicable, is paid by you as an employer on top of your Nanny’s ordinary wage. 

In all situations, your nanny can also choose to make voluntary contributions to their Super. This is deducted from their wages as a salary sacrifice meaning that there is no extra cost to you as an employer. 

At Pay The Nanny, we take care of all the necessary calculations and pay this on their behalf to your Nanny’s nominated fund on a quarterly basis via the Superannuation clearing house. 

WorkCover insurance or workers compensation is an insurance scheme aimed at covering employers for the costs of benefits provided to employees if they are injured or become ill because of their work.   

This ensures that both you, and your Nanny, in the case of an exceptional circumstance which may render them unable to work. 

With Pay The Nanny, we can help faciliate a workers compensation policy for you. We can then assist with the ongoing management of this policy  such as claims and earnings re-estimates and filing. The amount of your policy will depend on which state you are based and we can help get you a quote before putting anything in place.

All nannies are paid on Friday and either weekly or fortnightly (depending on the cycle you elect)

Payments are always made for time worked in arrears and the normal working week runs from Monday to Sunday. For example, the fortnight worked ending on a Sunday is paid the following Friday.

If you're paying your nanny on a Monthly cycle, this is made on the second Friday of each calendar month. This relates to the prior calendar month worked (i.e the month worked in June is paid on the second Friday in July).

No, you won’t need to register as an employer with the ATO.

By signing up with Pay the Nanny we become the employer of record meaning that we will collect, calculate and submit the correct taxes with the ATO on your behalf.

Effectively, we act as a co-employer of your nanny. You'll still need to ensure you remain compliant with relevant employment legislation but Pay The Nanny will assume the responsibility and liability of filing and paying necessary taxes and employer contributions.

To ensure nannies are paid on time we require each household to sign a direct debit form.

Direct debits will go out fortnightly on the Tuesday of each pay week.

You’ll be responsible for ensuring that you have sufficient funds in your account before the direct debit goes out.

Timesheets need to be submitted for approval by nannies before 5pm on the Sunday of each week.

Timesheet approvals, leave requests and any other changes need to be provided by Employers  prior to 5pm on the Monday of each pay week.

If you miss the cut off, just get in touch. Our number one priority is always making sure nannies are paid on time and correctly!

To ensure we process the correct payments, our payroll cuts off at 2pm on the Monday of each fortnightly pay period.

Our payroll cut offs are pretty strict, so any information not received by 2pm, may notbe processed until the next payroll period.

However, we are pretty flexible and sometimes things happen! Just get in touch ASAP via payroll@paythenanny.com.au and we can help work something out.

We’ve focused on nannies at the moment but our services really extend to anyone who needs help with managing tax and payroll for their employees.

Feel free to get in contact with us if you have anything you think we can help with.