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This summer, we are seeing an increased demand for our temporary Nanny Payroll service as lots of parents are looking for childcare alternatives with so few of the usual (and very much appreciated!) holiday clubs available. Hiring a nanny or babysitter to help out at home is a popular option.
We have a lot of questions which always seem to pop up so thought we’d put them all together to help.
Do I need to register as an Employer if I’m only hiring a nanny for a few weeks?
If you are paying your Nanny £120+ per week or £520+ per month you need to register as an employer and operate PAYE.
You also need to register if you pay under these amounts but your nanny has other employment.
Do I have to pay my temporary Nanny holiday pay?
Yes. Temporary Nannies accrue holiday pay just as any other employee would from day 1.
Holiday pay is a little more tricky to work out for temporary placements.
We would suggest using the percentage method which equates to 7.24 minutes (12.07%) of holiday pay entitlement for each hour worked.
As it is unlikely that the nanny will be able to take paid holiday during the summer placement, this should then be paid at the end in their final payslip.
More information on holiday entitlement can be found here:
www.gov.uk/holiday-entitlement-rights
Do I have to offer a workplace pension to my temporary Nanny?
All employers have a legal duty to ensure that a workplace pension is available and any eligible employee is automatically put in to it.
However, a postponement period of up to 3 months can be applied so in most cases, a parent employing a Nanny just for the 7 week summer holiday can action this and not have to set up a pension scheme.
There is still the legal requirement to complete a “Declaration of Compliance” with The Pension Regulator though and the nanny does have the right to request that she/he is put in to a workplace pension scheme.
More information can be found here: www.thepensionsregulator.gov.uk/en/employers
Do I have to pay my temporary nanny sick pay if she/he is ill?
If the Nanny is being paid £120+ per week or £520+ per month and has been off sick for at least 4 consecutive working days, Statutory Sick Pay needs to be paid. Unfortunately, this is at the cost of the employer as no refund is available from the government (unless the sickness is Covid-19 related).
We hope this guide has been useful but please do get in touch if you have any questions or would like us to run any payroll cost calculations for you.
Email us at: [email protected]
