Why Use a Nanny Payroll Service

Jason Carr • Feb 14, 2021

When hiring a nanny, payroll is typically one of the final things that many families consider. However, if payroll isn’t managed correctly it could end up costing families thousands of dollars in unpaid taxes, unpaid leave and additional professional fees.

Pay The Nanny is a payroll provider which was incorporated to help make it easier for families to manage the payroll for their domestic employees. We are an end-to-end payroll provider meaning that we provide dedicated customer service in addition to our online payroll software. 

In this article, we outline the key benefits of Pay The Nanny and why families should consider using a nanny payroll service rather than trying to manage it themselves or relying on an “off the shelf” payroll system. 

1. Simple, easy and hassle free

Our service is incredibly simple for both families and nannies to be able to manage.

Upon signing up, families are provided with an online sign up form. This form captures all the information that is required for the payroll set up and typically takes 10 – 15 minutes to complete.

Once you’ve completed that form then from week to week it’s fairly hands off. As a family, all you’ll need to do each week is approve your nanny’s timesheet and ensure there are enough funds in your bank account. From the completed timesheets, we calculate everything required and send you a summary of what is due to be paid. If your nanny doesn’t require a timesheet then it’s even easier and all we need to know is any changes for payroll each week.

2. We take care of PAYE, ACC and all other taxes

As a customer of Pay The Nanny, you won’t be required to register as an employer with the IRD. In fact, you won’t need to worry about the IRD at all!

Pay The Nanny becomes the “Tax Employer” of your nanny which means that we inherit all the responsibility for calculating, deducting and paying the necessary taxes to the IRD. The necessary taxes are collected with each payroll and then paid to the IRD.

It’s important to note that any taxes we collect are retained in a trust account until they are paid to the IRD. This trust account is also audited by a chartered accounting firm to provide an extra level of comfort to families.

Another benefit is that we collect the correct amount of ACC with each pay-run as well. This ensures that you won’t be met with a nasty ACC bill each year!

3. Ensure your nanny gets paid on time, every time

Pay The Nanny runs a simple direct debit payment method. This ensures that the pay to your nanny will never be late.

As long as you have sufficient funds in your bank account then the correct amount of payroll will be deducted from your account each pay period. If you’re travelling, or don’t have access to your bank account, with Pay The Nanny you won’t need to worry about having to run payroll each week.

We have strict deadlines and pay cycles which means that nannies know exactly when they will receive their pays each period. 

4. Online timesheets and payroll system

Pay The Nanny utilises an online payroll software called Flexitime.

Flexitime is an easy to use payroll system which can be accessed from both a desktop or a mobile device.

Nannies are able to use the system to log their timesheets each week and also have access to all their leave balances and payslips. They can access any historical payslips as well which is important to families.

5. We’re cost effective solution when compared to other solutions

Pay The Nanny is more than just an online payroll system. We are a dedicated payroll provider which prides itself on customer service.

With our fees starting at only $8 per week, we’re priced relatively similar to “off the shelf” software like smartpayroll or ipayroll. While those type of software are excellent payroll software you don’t receive the same level of customer service as Pay The Nanny. You’ll also still be responsible for managing all the other aspects of payroll such as filing with the IRD, registering for ACC etc. 

We are experts in nanny payroll and do not charge any additional fees for any “ad-hoc” payroll advice that is required. Families and nannies can utilise our services at any time via email or phone. 

6. Ensure you remain 100% compliant

With Pay The Nanny you can be completely sure you are always 100% compliant.

We make sure that all your taxes are calculated and paid correctly with the IRD. This means that you’ll never have to worry when PAYE is due or whether you’ve paid the right amount of Kiwisaver.

We also provide advice around making sure that you comply with relevant legislation. This helps to make sure that families are meeting their minimum requirements as an employer.

7. Leave management

Finally, Pay The Nanny will take care of all your leave requirements. All nannies are deemed to be employees which means families are required to pay annual leave, sick leave and public holidays.

Pay The Nanny maintains leave balances within our payroll system which allows both families and nannies to determine how much leave is available at any point in time. Nannies are able to apply for leave through the online platform making it simple for families to track leave being taken.

We are also able to provide advice around whether employees would be entitled to leave depending on what their working pattern is at the time leave is taken.

About Pay The Nanny

Our mission is to make it as simple as possible for households to manage payroll for their nannies and domestic employees.​

Pay The Nanny provides friendly, accurate and flexible nanny payroll services to nanny employers. We take care of everything to do with PAYE, ACC, holiday pay, sick pay and Kiwisaver. 

For more information, check out our website at www.paythenanny.nz. Make sure you give us a like over on our Facebook page too.

CALL US

Feel free to give us a call.

+ 64 4 560 3797

EMAIL US

For general enquiries & questions, 

contact us via email

By Mark Hudson 07 May, 2024
Making Payroll Simple for Nannies since 2019!
By Mark Hudson 19 Feb, 2024
Nanny Pay Rates for 2024 in New Zealand
Share by: