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Obligations when employing a nanny / babysitter
taxation and insurance

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#1 duedec

Posted 14 January 2010 - 10:08 AM

I am trying to work out what the employer obigations are when employing a nanny or babysitter.

I am looking at employing a nanny / babysitter for approx 5 - 8 hours per week for a few months.

Based on these hours, is it my responsibility to deduct tax from their wage?  How have others worked in a similar situation.

#2 gida1

Posted 09 September 2010 - 09:18 AM

If you are employing a nanny then you would need to deduct tax, pay superannuation and may even have to take out workers compensation insurance. You could call the ATO to get some advice. Many people use nanny agencies so that they don't have to worry about these things. With regard to insurance you should make sure that the nanny has their own public liability insurance cover or if they are employed by an agency, check that the agency provides the public liability insurance cover.

#3 sqawk

Posted 09 September 2010 - 01:14 PM

I think if you are employing a nanny on a "casual basis" then you are not expected to deduct tax or pay super etc.  My understanding is upto 2-3days/week is considered "casual".  (by all means check with ATO).

How much you pay, whether that included super, sick leave etc, is usually negotiated directly with the nanny (unless you are using an agency).

#4 The Falcon

Posted 09 September 2010 - 01:19 PM

As the pp said, if you are an employer then you need to withhold tax, lodge quarterly BAS (to remit the tax withheld), provide a group certificate at the end of financial year, pay superannuation guarantee of 9% if you are paying her more than $450 per month (no need to pay if salary < that threshhold) and take out workers compensation insurance.

Generally when you discuss an hourly rate with a prospective employee then that would be gross pay, and the tax would come off that.  The super and workers comp would be on top of that.

If you agree to an annual renumeration package then that would include salary, super & tax, but workers comp is always an employment expense on top of that.

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