Your Responsibilities
(What every employer should know)
This is a one page summary of just some of your responsibilities as an employer. You should seek further information as soon as you are faced with any of the situations described, or in any of the many other circumstances where employment legislation has a bearing.
Employed / self-employed
Some nannies will suggest that they pay their own tax and National Insurance. Unfortunately, this just isn’t an option, since HMRC does not recognise this type of work as self-employment. HMRC places the responsibility firmly on you as an employer, regardless of your nanny’s circumstances.
Tax and NI
You must make deductions from any payments that exceed £110 per week. This applies to all employees, including Au Pairs. If your employee has other income, tax will be due even on payments less that £110 per week.
The tax and National Insurance deducted, together with employer’s National Insurance, is paid over to HMRC monthly or quarterly.
(NB When you register with NannyMatters we take care of all of the above)
National Minimum Wage
Your employee’s gross hourly rate must not be less than the published rates, which increase in October each year:
http://www.direct.gov.uk/en/Employment/Employees/TheNationalMinimumWage/DG_10027201
Payslips and P60
Your employee is entitled to receive a payslip each pay day and a P60 form each year, which we provide.
Sick Pay
You do not need to pay anything at all for the first 3 days of any sick leave (unless you agreed to enhanced sick pay in the contract). Statutory Sick Pay starts on the 4th consecutive day of sickness.
We can claim almost all SSP back from HMRC, so you should always tell us the dates, even if you intend ‘topping up’ to full pay anyway.
Maternity Pay and Leave
Your employee is entitled to 52 weeks maternity leave. If she qualifies, you must pay her Statutory Maternity Pay for the first 39 of those weeks, although HMRC meets the full cost. We claim all of the SMP up front, so that you are never out of pocket.
Student loans, court orders
We may have to deduct student loan or Court Order repayments. You should tell us if you receive any communications along these lines.
Leavers
If your nanny leaves, she may be entitled to holiday pay, depending on the amount of leave taken in the holiday year to date. Holiday entitlement is determined by the contract of employment, but cannot be less than 5.6 weeks pa (from April 2009).
Note that this figure include bank holidays. A full-timer's entitlement from April 2009 is therefore 5.6 weeks x 5 days per week = 28 days (which is the equivalent of 4 weeks + 8 bank holidays).
If you wish to terminate the employment for a reason other than genuine redundancy, you should take advice beforehand, since there are specific procedures that must be followed in order to avoid a claim of unfair dismissal.
You should seek advice if you wish to terminate your pregnant nanny's employment, whatever the reason.
If you decide to let your nanny go for any reason other than Gross Misconduct, you will have to give her notice. The amount of notice depends on the contract, but cannot be less than 1 week for every year worked. If you'd rather she left right away, you can pay her the notice period instead.
She may also be entitled to redundancy pay, depending on her age, the length of service (minimum 2 years) and the reason for the departure.