It is a good idea to formalise details of the role and conditions so that it is understood and agreed.
Points you may like to include in the contract include:
- Job description (describe the duties)
- The type of employment arrangement (employer/employee; contractor; casual, etc)
- Pay/remuneration (state rate per hour/day, payment method and frequency, expenses)
- Terms of employment (expectations on duration, probationary period, notice of termination)
- Conditions of employment (normal hours, overtime, leave entitlements and public holidays)
Pay As You Go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes. You are required to withhold tax from payments you make to your employee. As a new employer, you must register with the Australian Tax Office prior to withholding any payments to employees. The Ato requires that you send all withheld amounts to the tax office.
For more information, visit ATO or call 13 24 78.
Employees paid to do work of a domestic or private nature for not more than 30
hours a week (e.g. part-time nanny) are not eligible for the superannuation guarantee.
If the nanny works for more than 30 hours a week they are entitled to superannuation. This is
currently 9% of the employee's gross wage (Superannuation Guarantee ruling SGR 93/1).
For more information, vist ATO or call 131 020.
Domestic Workers Compensation Insurance is intended to cover any person hired to perform paid tasks at a private residence. This includes not only nanny’s but a handyperson or a cleaner and will cover you if your hired help has an accident while on the premises.
Currently, all employers in New South Wales (including private households employng workers to carry out domestic duties) are required to provide workers compensation insurance cover for
their workers if they pay them more than $7,500 a year in wages.
For more information, visit Workcover
The Child Care Benefit (CCB) is a payment to help families who use 'approved' or
'registered' care. You must meet eligibility criteria (e.g., immunisation requirements, residency requirements and use approved/registered care) to gain the Child Care Benefit (CCB).
Nannies fall under the ‘registered care’ umbrella when it comes to the CCB. Nannies must
register through the Family Assistance Office and must meet certain requirements (be 18+, have a Tax File Number).
For more information on CCB, visit Family Assistance.
For more information on registered carers, visit Family Assistance or call 13 6150.