As an employer, you are legally obliged to carry out certain responsibilities with regards to your employee.
For salary guidelines click here
PAYE and National Insurance Contributions:
- For help with payroll services and legal obligations that you must adhere to as an employer, we heartily recommend ‘Nanny Tax’. This specialised service offers assistance and guidance with regards to your responsibilities as an employer. Please see www.nannytax.co.uk. For more infomation about Nannytax click here. For more information about payroll support service for domestic employers click here.
- However, you may wish to register yourself independently. You will then be required to register yourself as an employer and operate a PAYE scheme on your nanny’s behalf. In each payslip, you are required to indicate PAYE and NI contributions made on the behalf of your nanny.
- As an employer, you are required to pay employer’s NI. This counts towards the employee’s (nanny’s) Statutory Sick Pay, Maternity Pay, unemployment and state pension benefits. You will also be obliged to complete an employer’s annual tax return. If you do not declare your employee’s earning please be aware that you will be committing a criminal offense. For more information about Statutory Sick Pay click here.
- It is vital that, as an employer, your nanny is properly insured. Whilst your nanny is working for you, they are your responsibility. You must therefore ensure that you have Employer’s and Public Liability insurance cover.
- Similarly, if your nanny is to have use of a car whilst working, or will be required to travel, they must have the appropriate insurance. It is best to be overly cautious with regards to your employee since the consequences of an instance of ‘bad luck’ can be serious. For more infomation on Employers Liability Insurance click here. For more information on how to insure your nanny click here.
The law now requires that every UK employer must provide for their employees an ‘occupational pension scheme’ that both parties contribute towards. It is known as ‘automatic enrolment’. This law also applies to anyone employing domestic assistants such as nannies and carers, which means you. Please be aware that even a verbal agreement still legally constitutes a contract of employment.
If an employee meets the following criteria, then they must be enrolled into a pension scheme:
- They are aged between 22 and 65.
- They work in the UK.
- Their earnings exceed £192 a week.
Of course, if an employee explicitly chooses to opt out of the pension scheme, then they can. Similarly, workers in the UK aged between 16 and 74 must be made aware of the existence of the pension scheme in case they wish to opt in.
This all sounds very confusing and long winded but each and every employer has these legal duties. Please follow the link below for information and updates regarding employer pension responsibilities. And, as the website says, #Don’t ignore it!