Nanny contracts

[nesomja]

Can anyone point me in the right direction for creating a contract for my nanny? Are there 'off the peg' versions somewhere like the Lawpack ones for tenants? And do I have to pay an agency to do the taxes and NI or can I work it out myself (I am good at maths!)? She's only going to be part time so I'm not sure it's worth paying large amounts if I can avoid it. I am completely new to all this and would appreciate any help. I am terrified at the prospect of having an employee but the other options were so bad that it's going to have to happen. I know I'll be responsible for holidays and sick pay but is there anything else I need to consider?

You can start by using a example contract but it will need quite a bit of modification to fit with your specific circumstances.
In particular Holiday entitlement is 5.6 weeks (which can include Bank Holidays). Gross Misconduct section I feel should include some examples of what you feel would result in instant dismissal. Salary should be stated as Gross Per Week, Gross Per Month, Gross Per Year (whichever time-period you like). Agreeing a Gross Salary is VITAL for a part-time nanny, as it may not be their main job.

You can do the tax/ni yourself using the HMRC website and Employers CD-ROM.

Thanks nannynick - I have quoted a net salary so have already made that mistake (but it will be her main job) - should I work out the gross salary and then stick to that even if things change?

Yes, work out the Gross amount and use that in the contract, plus explain to them how it will affect things going forward if necessary. Tax codes change from time to time.

calculator.kistax.com will do you Net to Gross, though not sure what correct taxcode to use is at the moment given recent Government changes.

Looks like the new tax changes announced in the emergency budget won't take affect until April 2011 source

So 647L would be the typical single persons tax code, though HMRC may advise you to use a different code at anytime.

Has your to-be-nanny given you a P45 at this stage? If they don't have that you will need a P46 - think there is one in your new employer pack... if not the HMRC new employer helpline can supply it.

Lots more about operating PAYE can be found at HMRC: PAYE

No haven't got a P45 but will ask for one ASAP. I don't have a new employer pack but presume I can get one from HMRC.

Sick pay for nannies is typically only SSP. If only SSP is specified in the contract, then you can at your discretion provide full pay if your nanny takes a day off as sick.

Look through the message threads on here with regard to other things you need to consider when employing a nanny. The Advanced Search facility will let you search using a keyword and restrict to a section... so you could search using keyword: contract

Your nanny has not yet signed a contract, so they may well not give you anything. So get the contract sorted out - you may want to send them a draft version and ask if they feel there should be any changes.

If first payroll run will be done in under 4 weeks time, register with HMRC as an employer (if you need to do so... it depends on the amount of pay). Otherwise hang on a bit until you are at the 4 week before payroll run point.

She doesn't start until August 1st, I am trying to get everything together first! That tax calculator is really helpful, thank you. I will get a draft contract together. One thing that has concerned me - if she gets pregnant am I liable for full maternity pay for 9 months? She will only working for me 2 days a week.

SMP has eligibility conditions on it which are a bit complex (well I find them complex) - all about working x number of weeks before y date.
As a small employer you usually get SMP reimbursed at 105%. Statutory Recovery: SMP

About SMP (for employees but it provides useful info for employers as well).

Employing a nanny for the first time - worth a read, especially about grounds for immediate dismissal.