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.

 

 

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

 

 

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.

 

 

We've developed our own custom platform that's cutting edge and best in class.

Previously, we've solely used third-party software but we have developed a custom platform that better meets the needs of our customers. It's been built with the domestic employee in mind and integrates with other key software.

For a demo/preview on the system and some general guidance - view 'Using the system as Employer or Nanny'.

 

 

All nannies are paid in arrears on the Friday in line with their payment cycle. Our normal working week runs from Monday to Sunday.

We have different pay cycles, either weekly, fortnightly or monthly and these are dependent on the preference of each customer.

All nannies are paid in the same cycle. For example, all fortnightly cycle nannies are paid at the same time, to ensure we can streamline our processes and so no pays get missed!

Monthly pays are paid on the second working Friday of each month (for the time worked in the calendar month prior).

 

 

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.

 

 

Nope. We are not a Recruitment Agency, so we do not source or place nannies with any households.

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

If you are looking to hire a nanny, send us an email to [email protected] and we can recommend some places to look.

 

 

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.

 

 

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.

 

 

We've built up a list of our most common queries and provided answers in this system support section.

 

 

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.

We're also operating in New Zealand and we're hoping to expand further in the next few years.

 

 

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.

 

 

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.

 

 

We love to partner with nanny agencies and help them build their offerings to customers.

Whilst we don't license out our software to external parties, we'd be happy to talk about partnership opportunities and how you might be able to integrate our software into your current solutions.

We are always eager to work with agencies, so get in touch and we will be happy to chat around how we can support.

 

 

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

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

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

If direct debits bounce, we do have a dishonour fee as it can create a lot of work for our team when that happens.

 

 

Signing up is super simple. You can create a profile here here

Once you have verified your email, you can complete the sign up form to get your nanny started. There's a bit of information you'll need to collect from your nanny and have handy before you begin the form (such as ATO numbers, bank accounts, tax codes & superannuation 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.

If you are a nanny wanting to sign up, we recommend chatting to your Employer as we'll need them to sign up first. If you refer your employer, and they aren't an existing customer, we'll give you a $50 voucher to say thanks!

 

 

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.

 

 

Timesheets need to be submitted and approved before 5pm on the Sunday of each fortnightly pay period.

Any payroll changes need to be received by us before 2pm on the Monday of each week.

While the deadlines appear pretty tight, we're always accommodating, and our number one priority is that everyone gets paid. So if you have any issues, then email us at [email protected] and we'll help to get it sorted.

 

 

To ensure we process the correct payments, our timesheets cuts off at 5pm Sunday of each week. Timesheets then need to be reviewed and approved by 2pm on Monday.

Our timesheet cut offs are strict, so any information not received by 2pm Monday might have to be included in the next payroll.

Having said that, we are always pretty flexible and it's important that everyone gets paid! So, if you forget to complete timesheets, just get in touch with us ASAP.

If you know in advance that it's likely you won't be able to meet the cut-offs, definitely send us an email to [email protected] and we'll be able to get it sorted for you.

 

 

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

 

 

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.

 

 

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!

 

 

To login to the system, use this link: login.

Before you are able to login, you'll have to have an active contract setup in Pay The Nanny.

If you've forgotten your password, select Forgot your password? and the system will send you a link to reset it.

f you're still having issues, email support at [email protected].

 

 

Timesheet entries close at 5pm Sunday each week. Once the timesheets close off, no further time can be entered for that week.

If your nanny needs to complete timesheets each week, we'll send them two email reminders prior to the cut-off. We encourage users to ensure that timesheets are entered before 5pm Sunday so there are no issues with either the invoice or the payroll.

Timesheet approvals need to be completed by employers by 2pm Monday. If no approval is provided, the system will automatically approve these at that time.

 

 

We've recorded a quick demo video to provide nannys with an overview of the system:

You can view the demo video for the web app here.
You can view the demo video for the mobile app here.

 

 

We've recorded a quick demo video to provide employers with an overview of the system:

You can view the demo video for the web application here.
You can view the demo video for the mobile application here.

 

 

For both an employer and a nanny, you'll be able to update your key profile information when you've logged in to the app.

1. On the navigation tab, head to My Profile
2. On that tab, you'll be able to change your personal info, address info and payment info
3. Update the information that requires changing and select save
4. When you refresh the page, the updated details should now be available

 

 

Invoices are processed Tuesday each week. Invoices are raised in arrears and will relate to the week/fortnight prior to the invoice due date. Monthly payroll is paid on the second working Friday of each month and relates to the previous calendar month worked.

Direct debits will be processed overnight Wednesday. Please ensure there are sufficient funds in your bank account prior to the direct debit being processed to avoid any issues.

If there are any issues with your invoice, get in touch ASAP once you've received it.

 

 

After logging in to the system, head to the timesheet widget, which has the title Logged time this week.

You can then following the following steps:

1. Select the Log Time button
2. You'll only be able to enter time for the current calendar week
3. Select the Date and the day on which you are logging time.
4. Select the work type. In most cases, this will be Nanny Services unless it's a public holiday
5. Enter your start time and end time as well as any breaks that you had
6. Click save
7. The time entered should now be showing on the timesheet widget

Time can be added through the method above or through the following steps:

1. On the timesheet widget, select the ... button under the action column
2. After clicking that you will be able to do three things - either edit, duplicate or delete
3. To repeat the previous entries in the week select duplicate. The entries will automatically be recreated.
4. If you've made an error you can either edit or delete the timesheet entry.

 

 

Timesheet approvals will be sent automatically from the system at 5pm each Sunday. These will be sent each week, regardless of whether a pay cycle is weekly/fortnightly/monthly. Payroll invoices will still be sent in line with the relevant pay cycle though (i.e fortnightly).

Timesheets can be reviewed either through the email received, or directly through the dashboard.

To review the time, follow the following steps:

1. Review each time entry to ensure that your comfortable with what has been entered
2. If there are no issues, select approve. The pending approval will disappear from your page and the invoice/pay will be processed accordingly
3. If there are timesheet lines which need adjusting select Fix incorrect entries
4. You will now be able to edit the individual time entries. To edit time, select the ... button next to each of the entries
5. You'll be given an option to either edit, duplicate or delete.
6. After you've made the relevant adjustments add a quick note for the nanny so they're able to see what changes were made and why
7. Select approve. The time will now have been updated and approved in the system

If your nanny has fixed time and doesn't need to complete timesheet entries, you'll still receive a timesheet approval email. There are a few options for you:

1. Do nothing and the time will be automatically approved and paid
2. Approve the time
3. Correct entries
4. Add additional time, leave or expenses
. This might be applicable where a nanny worked extra hours some days but the extra time wasn't reflected in the initial timesheet entry
5. It's important to note that the system will generate the correct hours worked on each day but the start time will automatically show as 8am.

 

 

Both employers and nannies are able to change the bank account information where direct debits and payroll are processed from/to.

To do this:

1. Select My Profile on the navigation panel.
2. Under payment info, select Change next to the bank account number
3. Enter the new bank account information and press save
4. For security purposes, admin will review bank account changes before they are updated in the system.
5. Once the bank account change has been approved, you'll receive a notification in the system and the bank details will be updated under My Profile

 

 

Payroll payments are always made on a Friday but may take up to 1 business day to clear in to your bank account but should be sooner.

Payroll is processed in arrears in line with your set payroll cycle. For each week/fortnight worked, the payroll will be processed and paid the following Friday.For Monthly pay cycles, this is paid on the second working Friday of each month and relates to the prior calendar month worked.

 

 

If you are a nanny who has fixed time and doesn't need to complete timesheet entries, you can still access and edit time on a weekly basis.

A few important notes:

1. The system will automatically populate your timesheet with your regular hours on Monday morning of each week
2. If there are no changes needed, you don't need to do anything and the time will automatically be sent, approved and paid.
3. You can still edit each time entry or add additional time worked on a specific day
4. It's important to note that the system will generate the correct hours worked on each day but the start time will automatically show as 8am.

In short, if you have fixed, recurring entries then you don't need to do anything on a regular basis. However, you'll always be able to go in and edit/add additional time or expenses.

 

 

A client can add a leave request or time entries for a nanny, when completing their timesheet review after Sunday 5pm.

To add a leave request, follow the following steps:

1. Review each time entry to ensure that your comfortable with what has been entered
2. If there are no issues, select approve. The pending approval will disappear from your page and the invoice/pay will be processed accordingly
3. If there is a leave request that needs to be adjusted select Fix incorrect entries
4. At the bottom of the screen select Add Leave Entry
5. To request a new leave enter start date and end date
6. A dropdown should automatically show with all the days in the period that was taken as leave
7. On each day of leave, enter the amount of Leave Hours that you require. To make it simple, the system will automatically show your average working hours on a specific day but these can be overriden (and should be reviewed)
8. Select the applicable Leave Type from dropdown box and enter save
9. Once you've entered the leave request, add a note to the bottom of the timesheet review around what changes have been made. This will be included in the notification sent to your employee
10. Make sure any normal time worked, on the same day as the leave request is deleted from the timesheet review, to avoid the day being double counted
11. Enter approve on the timesheet review to finalise the time

The hours/leave will be automatically adjusted and sent to your nanny as a notification.

 

 

There sure is and this can be accessed on either Android or Apple.

Download it via the links on the app or play store.

Play store: here.
App store: here.

 

 

Expense reimbursements are loaded in a similar way to timesheets. Select Logged expenses this cycle on the dashboard.

You can then enter expenses in the following way:

1. Select the blue Log Expense button
2. A small window will pop up where you can enter the expenses
3. Select the date which the expense reimbursement relates to. N.B you'll only be able to enter reimbursements for the current calendar week
4. Select the reimbursement type as either travel or expense. Travel is paid at the IRD approved mileage rate and expenses are paid at the monetary value which is entered
5. Add the KM or $$ amount in the field which pops up
6. Add a note around what the reimbursement relates to. This will show on the invoice to your client
7. Select save

The expenses entered should now be showing on the dashboard. If you've made an error:

1. Select the ... button underneath the action column
2. You will be able to either edit, delete or duplicate the entry
3. Add the relevant task and click save
4. The updated amount should now be showing on the expense widget on your dashboard

 

 

Payroll invoices will be sent to clients on a Tuesday. Payroll invoices will only be sent in line with each pay cycle. I.e fortnightly cycle nannys will only receive one payroll invoice every two weeks.

Once you've received your payroll invoice, there's nothing you need to do. We'll process the direct debit overnight on Wednesday and payment will be made to your nanny on Friday.

We've added some additional details to the invoices though to provide more granular information to customers. If you do have questions on the invoice, or something doesn't look right, just get in touch.

 

 

We're always happy to help and we're available during normal business hours to assist.

Our contact details are:

• email: [email protected]
• phone: 1800 066 493

We're only a small team, so if you can't get through our phone line - leave us a message and we'll call you back, or send us through an email.

 

 

Leave balances are updated after each payroll is processed.

After logging in to your dashboard, you'll see the Available Leave Balances widget. On there, you will see the following leave balances:

• Annual Holidays
• Sick Leave
• Alternative Holiday Leave

A few notes:

• If your holiday pay is paid with each payroll (i.e holiday-pay-as-you-go) the annual holidays balance will always be zero
• If you haven't been employed for six months continuously, you'll also notice that your sick leave is likely to be zero as well
• To make it simple, annual holidays will always be shown as hours, rather than days or weeks.

 

 

Leave balances are only updated after each payroll is processed.

After logging in to your dashboard, you'll see the Available Leave Balances widget. On there, you will see the following leave balances:

• Annual Holidays
• Sick Leave
• Alternative Holiday Leave

A few notes:

• If your nanny has their holiday pay paid with each payroll (i.e holiday-pay-as-you-go) the annual holidays balance will always be zero
• If your nanny hasn't been employed for six months continuously, you'll also notice that your sick leave is likely to be zero as well
• To make it simple, annual holidays will always be shown as hours, rather than days or weeks.

If you can't see any balances when you first login to the system, that's OK. These won't be updated until after the first payroll has been processed via the new system.

 

 

Leave requests are able to be made through either the Leave tab in the navigation panel or by clicking on Request Leave under the Available Leave Balances widget.

The following steps can then be followed:

1. To request a new leave enter the Start Date and the End Date
2. A dropdown should automatically show with all the days in the period that you have requested leave
3. On each day of leave, enter the amount of Requested Leave Hours that you require. To make it simple, the system will automatically show your average working hours on a specific day but these can be overriden and should always be sense checked.
4. Once you've entered the hours, add a note around what the leave request relates to. This will be included in the information being sent to your employer
5. Select the applicable Leave Type from dropdown box and enter save
6. Under the timesheet widget the leave request will now be showing on the applicable day. You don't need to enter leave in to the timesheets, so if there is a double up of time, delete the timesheet entry.

Once that has been completed a leave request will be sent to your employer to either approve/deny. To review the status of your leave request:

1. Under the Leave tab in the navigation panel you will see a history of all leave requested
2. Under status the leave request will be showing as either closed/pending or approved
3. If the status is closed this means that the leave was approved and has already been paid
4. If your leave is denied then you'll receive a notification via your dashboard as well as via email and the request will be removed from your history

If a leave request is sent to an employer but is not approved prior to the payroll being processed, the system will automatically approve this and it will be included in the next applicable pay.

 

 

When a nanny makes a leave request, you'll receive an email notification. The leave request will also be available in the system when you next login.

After logging in to your dashboard you can follow the following steps:

1. Any leave request should be showing at the top of your dashboard
2. The leave request will show the total hours being request and the days which the leave relates to
3. It will also show you the type of leave - i.e Annual Leave, SIck Leave etc
4. Review the leave request and if you're comfortable with the request, select approve
5. If the request is incorrect, or not approved, select deny
6. Regardless of whether you approve or deny the request, your nanny will still receive a notification of the outcome
7. You can review the status of any leave requests under the leave tab under the navigation panel
8. Any approved leave will be paid in the next applicable payroll. Any denied leave will be deleted from the system and won't be paid

Note: Leave requests follow the same timeframes as expenses and timesheets. If a leave request is not approved/denied before the timesheet cut off for the relevant week it will automatically be approved and paid. Therefore, we would encourage employers to request their nannies to load any leave as soon as possible to ensure there is enough time for employers to review the request.

 

 

Once you have submitted a leave request, you won't be able to amend it. This is done to ensure that the leave request which your Employer is reviewing doesn't change.

If you need to change a leave request, or cancel it, just reach out to the support team at [email protected] and we'll be able to help get it sorted for you.

 

 

Payroll invoices will automatically be sent via email after each payroll is processed and will be available through your employer dashboard.

You'll also be able to view historical payroll invoices through the My Invoices tab in the navigation panel.

Note: this tab won't show in the system until after the first pay has been processed. So when you login for the first time, don't worry if you can't see this tab.

If you need a summary or statement for a specific period, like a tax year, then don't hesitate to reach out to us at [email protected] and we can help pull something together.

 

 

Finalising time for the week is simple and there isn't any manual input required from nannys.

The key points to note on finalising time for the week:

1. At 5pm Sunday of each calendar week, timesheet entries will cut off
2. After this time, nannys won't be able to enter any further time for that week or previous weeks.
3. The system will then automatically generate a timesheet review and send this to your employer for approval
4. If there are any changes required, your employer will be able to make these as part of the timesheet approval process at their end

The most important point to note with timesheets is that all time in the system at 5pm Sunday will be sent through to your employer for approval. If no time is entered, the system won't generate a timesheet approval for your employer.

 

 

Payslips will automatically be sent via email after each payroll is processed usually on a Tuesday afternoon.

You'll also be able to view historical payslips through the Payslips tab in the navigation panel.

Note: this tab won't show anything in the system until after the first pay has been processed. So when you login for the first time, don't worry if you can't see anything here.