Is employing a nanny just the start of your payroll needs?
Do you employ other members of staff?
Are you thinking about employing more employees or do you own a small business?
If you employ a gardener or personal assistant we can administer the payroll needs
of these individuals in the same way we provide the nanny payroll service.
If you own a small business then outsourcing your payroll to a professional payroll
bureau can save you significant time and money.
Click here to find out how you can benefit from having a professional payroll company
administer your payroll.
We have provided a typical example of the calculations that are needed to generate
the level of Gross Pay that you will have to pay your nanny based on your agreed
net pay. (Please note all figures are examples and are in no way binding).
Net to Gross Calculations
Lets say you and your nanny agree a net monthly wage of £1000.
This level of net pay is calculated from a gross amount that includes the correct
calculation of PAYE (income tax), National Insurance and any other elements such
as pensions or student loan contributions.
The calculations that are needed to generate the gross payment result in the amount
of £216.67 being added to the £1000 net monthly wage, ensuring that these calculations
are correct is the most important element of your payroll.
This then generates the Gross Monthly Wage of £1216.67
Are there any other elements that may affect my nanny’s pay?
There are many different influences on peoples pay so the example we have set out
above is intended as an example only.
Other elements that can have an affect on the Net to Gross calculation are:
Tax codes -Your nanny may have more than one job or have other situations affecting
how much they earn, these different situations may affect the tax code that will
apply to their pay.
Statutory sick pay -You will be responsible as the employer to pay any qualifying
statutory sick pay if the situation arises.
Stakeholder pension -If your nanny wants to pay into a pension then this may need
to be taken into consideration in arriving at the agreed net pay.
Holiday pay -You may wish to show this separately on your nanny’s payslip.
All of these elements can make the paying of your nanny a complicated matter, if
something goes wrong it can cause serious headaches. Getting in touch with HMRC can
also be a time consuming process.
At NannyPayroll.com we take away all the hassle of administering the different aspects
of payroll so you have no need to worry, all you need to do is tell us how much net
pay you wish to pay your nanny and we will do all the hard work from there!
Payroll legislation changes all the time and can often have serious consequences
if not adhered to.
For the latest news on all aspects of payroll, both employer and employee related
please click here