Method of Engagement
Your responsibilities when engaging a nanny
Wollongong Nannies is a booking agency and our nannies are independent contractors. When you engage a nanny who you pay directly, you are considered the employer. The following then applies to you.
Superannuation
If you are engaging a nanny in an arrangement where she/he works over 30 hours a week or more, the nanny is classified as a domestic worker. With this, the employer is required to pay superannuation for the domestic worker. In the case of a domestic worker, superannuation is required to be paid, even if they are contractors and an Australian Business Number is quoted.
The Australian Taxation Office states “If you engage someone to do work of a domestic or private nature for 30 hours or more per week and pay them $450 or more (before tax) in a calendar month, you have to pay super for them”.
Currently the contribution is 11.5% of the nanny’s pay.
More information about this can be found by visiting:
- https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/
- https://www.ato.gov.au/Business/Super-for-employers/Paying-super-contributions/
Workers Insurance Policy
As an employer in New South Wales, you are required to have a workers insurance policy, unless you pay less than $7500 in wages annually.
A workers insurance policy provides an employer coverage, in the event one of their employees suffers a work related injury or illness. An employer is any person or business entity that employs or hires workers on a full time, part time or casual basis, under an oral or written contract of service or training. For example, a household who hires a babysitter or a nanny is an employer.
More information about this can be found by visiting: