It’s a time of year that’s become drilled into our psyche in a similar way to the New Year’s holiday or Anzac Day. The back-to-school season is a moment to take stock and get your childcare in 2023 sorted.

What’s reassuring is that there tends to be a meeting of minds at around this time. It’s a safe bet to assume that nannies, childcare agencies and other parents will also have their focus on the same kinds of issues.

So how do you go about employing a nanny in 2023? What nanny payroll services will you need? Take a few moments to read on for all the answers.

Have a Plan!

The sooner you can get the important dates in the diary, the better. Set aside some time to write down all the key dates for 2023 in your schedule. Include:

• Your work pattern and any holiday you’ve booked already
• Public holidays
• Special days when you know there’s going to be a family event or wedding
• Specific regular times you know you’ll need to keep free for other commitments

Once you see the year take shape, you’ll find it easier to understand precisely what support you need. Whether you require a nanny for a few hours on a regular day each week, or more than that, will become clearer.

Remember to build in the commitments others such as grandparents or friends may have . Many older relatives like to get involved in childcare but it’s human nature to want to feel valued. If a member of the family offers to help out, consult them and never assume.

Finding the Right Nanny

If there’s one question that we hear time and again, it’s, “Where do I find childcare in NZ?” Before you start your search consider the qualities that matter to you most.

Important drivers should be qualifications, experience, personality and references. Cost is also key so you might want to consider a live-in au pair as they might ultimately be a less expensive option.

Nothing beats a gut reaction. Make a list of questions that you’d like to put to any nanny you shortlist that will flush out the perfect fit.

It’s Not What You Know, It’s Who You Know

Many of us can look back on our careers and realise that the vast majority of jobs we’ve secured came via introductions made by people we know. You should use your own network to reach out for potential nanny suggestions.

Use sites like LinkedIn and the usual social media apps to your advantage. Message other working parents you’ve connected with to see what’s worked for them. Ask for recommendations. Most people like sharing their experiences.

Facebook also offers opportunities to join specific groups aimed at connecting nannies and families. Here are 3 to get you started:

• Nannies NZ
• Auckland Nanny Network
• Mummy Support Group NZ

Nanny Agencies

Using an agency can give you an extra layer of reassurance that someone else has checked out a nanny’s credentials. PaytheNanny has partnered with these 5 agencies:

For Nannies:

• Red Robin (cover the Ackland area)
• NZ Nannies (cover all of NZ) 
• Poppets (cover the Auckland area)

For Au Pairs:

• Au Pair Link (cover all of NZ)
• Playschool Au Pairs (cover all of NZ)

You could also check out sites like trademe.co.nz, the online equivalents of a classified ad magazine for jobs.

All Parties need to Understand the Schedule

Just when you think the hard work is over because you’ve found your ideal nanny, a whole load of new issues arise. Clarity is key. To start with, ask yourself these questions:

• What is your childcare budget?
• How many childcare hours will you need and when do you need them?
• Have you considered what the holiday, sickness costs and overtime will be?
• Have you thought through all the duties you expect your nanny to perform?
• Do you want your nanny to drive and do errands?

Armed with all your important dates from school holidays to a key appointment you cannot miss, sit down with your nanny. In effect, in almost all cases, you will be your nanny’s employer and they will be your employee.

Clearly, your nanny has rights but you call the shots and together you need to be clear about all the issues around time off, overtime, expected duties and pay.

How to Hire a Nanny and the Importance of a Contract

Although the goodwill between you and your nanny counts, you must have a contract. It manages the expectations of both parties, acting as written proof of what you’ve agreed. Some clauses in your nanny’s contract will be mandatory. Here they are:

• Your name and the name of your nanny
• The job title and job description
• Details of where your nanny’s place of work will be
• The agreed hours of work or an explanation of working time arrangements
• The salary your nanny will receive and when they will get paid
• Agreement to at least time and a half pay for working on a public holiday
• An agreement your nanny will work on a public holiday if this is a requirement

You also need to include a clause about how the process would work if there’s a problem in the employment relationship with your nanny. This includes stating that your nanny must raise any personal grievances within 90 days.

You should also include a clause about what happens if you have to cancel or cut short a working day. For example, if you decide you don’t need your nanny on a working day but forget to tell them before they’re due to start work, you will typically have to pay them as if they had worked that particular day.

The New Zealand government’s official website for businesses has plenty of practical advice including how to phrase the contract you have with your nanny.

Paythenanny can also offer our customers a range of contract templates. These allow you to draw up a proper document between you and your nanny.

Staying Compliant

One of the key surprises, if you’re employing a nanny in 2023, might be the amount of admin involved. It’s not that nannies are by nature more demanding, it’s simply that you have to adhere to the rules around employment.

The Nanny Payroll Cycle and PAYE

Nannies earning a salary will get taxed directly from their pay. You’ll probably already be familiar with the terms PAYE or pay as you earn. When you employ a nanny, it is up to you to take off and pay PAYE income tax for your nanny.

Your nanny will have the right to paid annual and sick leave as well as entitlements related to working on Public Holidays. Ensuring your nanny gets the correct payments for leave can get complicated.

Your nanny’s hours may well be variable. As a result, it can be quite easy to under or overpay them.

What About KiwiSaver?

KiwiSaver is there primarily to help set employees up for retirement. They can action regular contributions from their pay to their scheme provider.

As an employer, you should check if your new nanny is eligible for automatic enrolment in the scheme. When they are, it’s up to you to set them up and ensure the required KiwiSaver deductions and compulsory contributions get made for them.

Like every employee, a nanny can contribute 3, 4, 6, 8 or 10 per cent of their gross salary to their KiwiSaver account. It is mandatory for an employer to match a minimum of 3 per cent.

The ACC Employment Levy

You must ensure that your home is a safe environment for your nanny to work in. The Accident Compensation Corporation (ACC) is a government organisation. It looks after New Zealand’s accident compensation scheme and also determines claims.

We often now use ACC in a general sense to refer to the entire scheme and the compensation a person might get under it. Costs covered under the scheme include:

• Medical and other kinds of treatment
• Loss of salary
• Social rehabilitation aimed at giving back an independent lifestyle
• Vocational rehabilitation to assist get people returning to work
• Lump sums for long-term disabilities

ACC will offer cover for your nanny or you should there be an accident that causes injury in the workplace. Employers share part of the burden of paying for ACC. If they do not pay ACC they may end up facing hefty penalties.

How PaytheNanny Can Help

Understanding how to hire a nanny can be fraught with complexities. Imagine if there was somewhere you could go for all your nanny payroll services. What you need is a low-cost service that can do all the following:

• Pay your nanny on time, deducting taxes
• Sort out PAYE with the IR
• Keep track of your nanny’s holidays
• Sort your nanny’s holiday, Public Holiday and sickness pay
• Take care of KiwiSaver and ACC contributions
• Offer continuous support to both you and your nanny

PaytheNanny ticks all those boxes. Engaging our services is a small price to pay for the precious time it will save you and the peace of mind it’s going to give you.

Get in touch with us today and find out how we can help get all your nanny payroll issues resolved. That’s childcare in 2023 sorted!