Why Use a Payroll Company to Calculate Your Nanny Pay?
We invited a payroll company Way2paye to write a blog post featuring your most frequently asked questions and we hope you find this content helpful:
Why use a payroll company to calculate your nanny pay?
If you employ and pay more than £123 per week you must register as an employer with HM Revenue and Customs (HMRC) for PAYE.
It is time consuming and If you get it wrong HMRC could fine you heavily.
Elisa’s London Nannies always recommend that you use Way2paye who are a friendly and professional payroll company, established within the industry and reliable. They have also won the Best Nanny Payroll Company by ‘UK Nanny’ in 2021 and 2022.
Frequently Asked Questions
Q. How long will it take to set my payroll up?
A. On receipt of your joining forms and payment Way2paye will set up your account immediately. They usually turn things around in days, however in busy and holiday periods it may take a little longer.
Q. Can you back date my nannies payroll as she started a few weeks ago?
A. Yes
Q. Can my nanny be self employed?
A. No nannies do not meet the HMRC criteria for the self employed; the only exception is maternity nurses.
Q. Should I agree a gross or net salary?
A. It is always safe agree a gross salary. If you agree a net salary and your nanny owes tax for any reason or is in more than one employment you could be liable for extra costs.
Q. I have childcare vouchers can I used them to pay my nanny?
A. Yes if your nanny is registered under the Childcare Approval Scheme / Ofsted Childcare Register.
Q. My nanny is waiting for a P45 from her previous employer can I forward this to you later?
A. Yes, Way2paye can set your payroll up for you and then process payslips on receipt of the P45.
Q. If my nanny becomes pregnant do I have to pay her?
A. You may have to; however if yes Way2paye can calculate it for you claim it back from HMRC on your behalf. They will also claim 3% compensation from HMRC for you. They offer Guidance of what to do if your nanny becomes pregnant.
Q. My nanny is off sick what do I have to pay?
A. Check your contract, many employers often pay their nanny for the first few days full pay, however if nothing is stated in the contract by law you will need to pay SSP. Let them know and they can calculate this for you.
Q. Why is my quarterly tax bill is higher than I expected?
A. Please check that you have included employer’s national insurance. Many parents forget this cost.
If you have any more questions please do not hesitate to Way2paye