Nanny Numbers – Pay As You Go Nanny Payroll
Zest Payroll Solutions operates a friendly, reliable payroll service to help parents employing a nanny on a pay-as-you-go basis.
Unlike other nanny payroll services, we don’t charge you an upfront annual fee, you just pay on a monthly basis for as long as you need us.
Nanny Employer Responsibilities
If you pay your nanny above the National Insurance Lower Earnings Limit (LEL) you must register as an employer with HM Revenue & Customs (HMRC). For the 2017/2018 tax year the LEL is £113/week or £490/month.
They will open a PAYE (pay as you earn) scheme for your nanny’s tax and national insurance payments.
As an employer you have legal responsibilities regarding paying your nanny.
- Providing your nanny with regular payslips.
- Paying your nanny’s income tax and National Insurance contributions.
- Paying statutory payments such as Statutory Sick Pay (SSP) and holiday pay.
- Keeping tax records.
- Paying employer’s National Insurance contributions.
- Submit your payroll data to HMRC under Real Time Information.
- Providing a Workplace pension scheme.
Zest Payroll Solutions can help with all of these as well as advise on payroll matters.
For a full guide to becoming a new Nanny Employer please see our GUIDE.
How does Zest Payroll Solutions operate?
If you have not already done so, Zest Payroll Solutions will register you as an employer with HMRC, opening your PAYE scheme.
We then act on your behalf dealing with all HMRC correspondence.
Once we have your nanny’s details, you inform us of the salary or hours worked each month and we calculate what you need to pay your nanny and what is due to HMRC.
We will email you the payslips and any accounting reports that you may require for your own records and take care of all of the RTI reports.
You just have to make the payments.
How much does it cost?
We operate a monthly payment basis – a pay-as-you-go service!
We don’t charge you a yearly subscription where you are tied in.
Our current nanny payroll fee is only £25 per month*.
Temporary weekly nanny payroll is available at £15 per week for placements lasting 12 weeks or less.
The monthly/weekly fee includes registration with HMRC if you are a first time employer, all RTI submissions and the P60 for your nanny at the end of the tax year if there is a Nanny in employment at 5th April.
(*There is a £5 P45 charge if your Nanny leaves, a £5 set up fee when a new Nanny is subsequently employed and if your PAYE scheme requires closing there is a £15 admin charge (including the P45 for your Nanny.)
Zest Payroll Solutions strongly recommend agreeing a Gross salary with your Nanny. Find out why HERE.