I have just hired a fantastic nanny. This is my first nanny. she works 38 hours a week for me over 3 days. She works the remaining 28% of her time for another family. She has worked for them for a long time. Nanny wanted to be paid £10 net. I said that was fine but we would need gross pay rate in the contract, and from day 1 explained that the weekly gross amount was designed to result in her earning £10 net per hour based on current tax rates etc.
Other family have historically had a net pay contract and things were a bit notch potch - random payslips, no nanny pay company, etc etc.
The other family are now using a nanny pay company (same as us) but NO ONE seems to be able to figure out how to manage the pay so the nanny gets what she is expecting net. We have no benefit of her tax free allowance (yet). To complicate matters, she will be ending her contract with the current family in a couple of weeks and not starting the new one until the Autumn. We are the main employer as we employ her 72% of the time, but over the summer will be the sole employer.
Nanny is getting cross because she is expecting to receive £380 net a week but right now she is getting less from us because we are paying tax on everything we pay her.
I am losing sleep and I am desperately worried I will lose my nanny.
Should I just change to a net pay contract?