Can anyone check these figures for Nanny pay for me?

[llamallama]

I am hoping someone (Nannynick?) could look over these hours and payments and see if they have been worked out correctly!

This is for a term time only nanny....

8.30am to 5.30pm = 9 hours per day
9 hours per day x 5 days a week = 45 hour working week

£8.50 per hour = £382.50 per week (net)

Working term time only = 40 weeks a year

I worked out that stat holiday entitlement would be 4.8 weeks so round up to 5 weeks

So we need to pay them for 45 weeks a year

£382.50 x 45 = £17,212.50 (net) per year

Divided into 12 equal payments = £1434.38 (net) per month

So using the listentothetaxman calculator I worked out that to pay this much net per month, would equate to £22,000 gross per year, this would round up monthly payments to £1443 (net)

Is that right??? Looks too simple to me so I am convinced I have missed something!

I am planning to agree a gross salary with Nanny but wanted to ensure it was far in regard to hourly pay, holiday etc.

If I have gone wrong... please help!!!

Yep. All your calcs are correct.

Looks ok. You won't know Net until you know their taxcode.

Out of interest, why did you start from Net, given that you will be agreeing a gross wage?

No you have used 2011/12 figures: £22,000pa works out at £1,458 net in 2012/13.

40 weeks x 12.07% = 4.83 weeks, so rounding up to 45 is fair.

45 weeks at 45 hours per week is 2025 hours per year. Divide this by 52 to get the average number of hours paid per week: 39.94.

Put £8.50 net per hour and 39.94 hours per week in my calculator and you get £21,657pa - I'd round this to £21,660: if you pay monthly it is good to have an annual salary that is divisible by 12.

Thank you

Nanny nick : Nanny has stated she wants £8.50 an hour but wasn't sure what that was gross considering term time only so working backwards to try and figure it out.

MrAnchovy : thank you, I hadn't thought about checking what tax year figures I was using, I just used a calculator online

Make sure your nanny understands that it's a gross salary that is being agreed. Whilst you can work out what 8.50 take home is currently if her taxcode is 810L over time the take home pay will change (go up, or down) depending on taxcode and changes to taxation.

Just a word of warning on splitting pay in this way - if they resign at an earlier point of the year they may end up owing you money as they'll have been paid for time not yet worked. This would depend on if you're starting before or after summer holidays.

Thank you both.

Yes I realise about the unequal hours meaning they might end up owing money, I'm hoping to write something into the contract to help cover that scenario. They would be starting after the summer hols.

Thanks Nanny Nick, yes I will talk this all through with the Nanny to make sure we are both clear.