If you're thinking of hiring someone to help with your childcare duties, you might be concerned about the financial implications of becoming an employer. There are a number of things to take into account when you're considering outsourcing childcare, so it's best to be aware what your obligations will be.
While it is a great option for working parents, employing a childcare provider to assist with domestic duties isn't as simple as many parents first think. Not only will you need to negotiate a salary, but there are also certain legal requirements that you must adhere to.
For instance, you are legally obliged to ensure your nanny receives an employment contract within two months of their start date. You are also required to make tax and national insurance contributions, as well as give a clear outline of what your employee's weekly or monthly salary will be before they commence employment with you.
Using an online resource like a pay calculator will help you work out the estimated monthly cost of employing a nanny. Not only will you be able to work out what you can afford to pay them, you will also get an idea of your general expenditure when tax and national insurance are taken into account.
For instance, if you decide to pay your nanny a net weekly amount of 230, the pay calculator will work out that the estimated monthly cost to you will be 1133.56, which is inclusive of tax, employee's and employer's national insurance contributions. If you decide this is too much, you can amend the your weekly payment amount accordingly.
This is an incredibly valuable tool to help you figure out how much you can afford to pay for childcare. It is simple to use and takes just minutes to find online. However, the process usually only applies to employees with only one job who are on a standard tax code (1100L) during the 2016/17 tax year.
If you are looking to obtain details relating to a proposed annual gross salary, or if your employee has more than one job, it's a good idea to contact an agency that can advise you on all legal and employment matters relating to childcare. Similarly, if you haven't yet found a nanny, you might want to enlist the help of an expert.
You should be able to find a company offering legal advice to parents by searching online. Here, you will be able to enlist the help of a specialist to find a qualified and trusted nanny in your area. The company will then be able to assist you in all administration matters relating to your new employee until his or her contract has ended.
Services will range from advice about the current rates and thresholds; DBS checks; employer's costs and liability insurance; interview questions; employment contracts and insurance. Some will even be able to take care of your payroll for you, leaving you free to get on with your day-to-day life knowing your obligations are met.
This sort of company will be comprised of specialists in finance; childcare recruitment; payroll procedures; administration and, of course, parenting. It's important to find an adviser you can trust that knows the struggles of working parents and is committed to helping you lighten the load, so spend some time researching your options online.
Once you have registered with the service of your choice, you will then be able to reap the benefits of their expertise in the childcare and employment sectors, allowing you to recruit and employ a nanny with confidence, knowing that all of your legal obligations are being met.