Risky Business - Why You Need To Employ Your Nanny Properly
Thursday, 29 November 2018
When hiring a Nanny, a majority of families still believe that you can simply place an ad in a Facebook group or similar social media forum and pay cash for services rendered.
There is no doubt, that the Nanny industry is receiving more publicity than ever at the moment with the recent changes to Fair Work and the attention it is receiving from the ATO, it is now more important than ever that everyone is doing the right thing!
A Nanny is a career professional who is qualified and experienced in all areas of child care and often has tertiary qualifications in teaching, child psychology or other child-related fields. As such, your Nanny is entitled to all the same legal working rights and standards awarded to any other career expert, and offering (and paying) them cash for the care and safety they provide your children is not only offensive, but not compliant with the Australian Fair Work Act or legal tax and superannuation employer obligations.
Hiring domestic assistance is no different to hiring an employee in any workplace; taxation and superannuation details need to be collected and these benefits paid when payroll is carried out. Minimum wages, workers compensation, leave entitlements and required insurances are also just some of the obligations an employer needs to be aware of and make allowances for when hiring a Nanny.
It is risky business not to comply. Workplace accidents without adequate insurances can be very costly for a family. Do you have tens of thousands of dollars sitting around to continue to pay your Nanny if she slips on a drink spilt by your child and is off work for months with a back injury? For most families - probably not.
If you have a Nanny chances are she is an employee NOT a contractor. As such superannuation entitlements will apply if she is working 30 hours or more per week. While you might think things are all good now, what if she leaves down the track under less than ideal circumstances? What if she seeks out compensation for unpaid superannuation entitlements? If Fair Work and ATO find you are liable, not only will you need to cough up the superannuation entitlements, you will also need to pay interest on the amounts that should have been paid in the first place.
A Nanny employed correctly will understand their responsibilities and obligations from the start of their contract and are more likely to stay with a family much longer. Treating their role as a professional career, compliant with all payroll and Fair Work obligations, and not simply ‘home help’ will undoubtedly establish a feeling of security and trust in you as an employer.
Ticking all the boxes gives peace of mind for both the family and the Nanny and it all starts with everyone knowing what a legal and fair employment scenario should look like. Getting it right now will help you avoid (costly) headaches down the track.
About the Author
Emma is a mother of 4 who holds a Bachelor of Commerce. She is a qualified accountant and registered tax agent, placing her confidently to not only oversee the direction of NannyPay, but also assist families, Nannies and agencies on tax, superannuation and a variety of workplace relations.