When nannies find work through My Big Buddy they are not employed or paid by the Agency. They are either:
- hired as contractor by the family and administer their own tax using an ABN number
- hired as an employee of the family, who register with the ATO as an employer
If an applicant is offered a casual or temporary placement or ongoing, part time arrangement through a membership, chances are they are a contractor and should be paid through an ABN number. Any applicant offered an ongoing, full time contract should be employed by the family and paid via payroll. If you are unsure, you can use the ATO online test tool which will give you a determination on whether your nanny is a contractor or employee.
Hiring as a Contractor (all Casual Buddies and Buddies working through an MBb Membership)
If you determine your Buddy is a contractor you will need to organise the following:
- ensure your contractor has a valid ABN and arrange payment on issued invoices,
- check your contractors insurance and your insurance on protection for if your Buddy has an accident in your home, as most Buddies operate as sole traders and as such aren’t covered by workers compensation,
- determine, through the ATO if you need to pay your contractor super, as most 100% labour contractors are required to be paid super (only required if your Buddy is working over 30 hours per week)
Hiring as an Employee
If you determine your Buddy is an employee you will need to organise the following:
As an employer you will be required to:
- register as an employer with the ATO allowing you to withhold PAYG tax,
- issue a payslip for each pay period in line with legislative requirements by Fair Work Australia,
- organise workers compensation based on your local state requirements ,
- issue an employment contract in line with the National Minimum Standards (we can supply this)
- If your Buddy works more than 30 hours per week pay superannuation to the employees nominated super fund.
To help you with payroll administration we recommend Domestic Payroll http://domesticpayroll.com.au, who offer a range of cost effective packages specialising in employing nannies.
If your Buddy will be driving your vehicle you should ensure you have the appropriate insurance cover for them.
We also recommend Buddies organise nanny insurance which they can secure through NannySure, http://www.nannysure.com.au, which is a public and product liability for the nanny.