Please help with term time only nanny pay!!

[llamallama]

Ok so we employed a term time only nanny, agreed gross salary paid equally over 12 months, including pro-roted holidays. All fine. Except now I'm pregnant, due in June and providing all goes well, we will only need the nanny till end of May.

So this means she will miss out on the summer holidays which was factored into her pay.

So I'm assuming the best thing to do will be to re-calculate her pay excluding the holidays she will miss (will be 7 weeks) and up her pay each month between now and May to account for this?

Is that right?

Her current pay is based on 45 weeks per year (40 weeks working plus 5 weeks holiday)

So what do I do to work this out?

She started with us in September, so she will work for 8.5 months this year.

I'm lost!!!

I think specific dates may need to be known plus what holiday has been taken so far and any future holiday already agreed.

I think you will need to use the accural system for holiday calculation. 12.07% of time worked.

If you are using someone to do your payroll they should be able to answer this for you.

I would be sensitive to her situation though, presumably when she took the job she thought she was in it for the longer term so suddenly finding it isn't such a long term job and that she could owe you money and/or holidays could be a it of a shocker?

My nanny's hours vary by month but are pro-rata over the year. Contract states how her holidays accrue and also about re-couping salary if she leaves before end of any 12 month period.

Good luck with working it out!

Windy

Why would you not want them to also work June and part of July (to until the end of the academic term) - being on maternity leave and giving birth could see you spending quite a lot of time in bed, or sitting around the house, so you may well want to have an extra pair of hands around to help care for your existing child/children. I've worked for a teacher in the past and she took maternity leave but I was kept on, as the maternity leave fell about the same time as your's (baby born beginning of May), so a lot was over the summer holiday and she went back to work in the September.

At this stage what have you discussed with your nanny? Maybe it's worth waiting a while to decide what you want to do longer term, as you may well want your nanny to work next academic year, when your baby is a few months old.

I think you will need to use the accural system for holiday calculation. 12.07% of time worked.

That's no good - contractual holiday is much more than statutory minimum here.

How do you know you will be able to cope with your child(ren) in the final stages of pregnancy/with a new baby? Or is it a case of not being able to afford it? (Presumably the difference is about eight weeks?)

Note that both you and she will pay more National Insurance on the same amount of salary paid over 8.5 months than you would over 12 months. The best thing to do would be to keep the rate of pay the same but stop paying earlier.

I'd keep her. You will benefit from the help!

I hadn't even thought of keeping her on to be honest! We can't really afford it as I want to take as much mat leave as possible with baby 2 so need to save for that!

I have lots of family very close plus my DH is a teacher so he will be around all summer.

Her current holiday allowance is 5 weeks (I think statutory is slightly less and we rounded up) but as she is term time only she takes this in school holidays and is paid for holiday equally all year. So her salary is the same all year despite her hours changing.

We will owe her money rather than the other way around. I would like to pay this owed money as the months go on rather than all at the end!

Nanny knows I'm pregnant as she saw a hospital letter my DH left out :( not ideal way to break the news I know! But we had a chat and she now knows her job is likely to end when/around when baby is due. She is ok with it as its her first nanny job so hopefully she will go onto earn more with another family as she will have some experience/knowledge under her belt.

Are you ok about still giving her the agreed 5 weeks holiday?

Did she take Oct Half Term off, was that a full week off?
How many weeks at xmas, 2?
Feb half term, 1 week?
Easter - 2'weeks?
Summer half term - is that May?

Yep she had oct half term and yes the other holidays as you have stated.

She gets 5 weeks paid, rest unpaid. So she is paid for 45 weeks of the year. The problem is that she won't work a full year so need to pro rota her pay out I think.

Sounds like it would be reasonable to still give her 5 weeks paid, so you just need to work out how many weeks she needs to be paid for assuming a finish date of X and spread that over November-May (so if her last day of work is 17 May, divide the total to be paid by 6+17/31) to get monthly pay.

There will be more tax and NI to pay on this of course because you will be losing the benefit of the nil rate bands for June-August (google mranchovy calculator to get some idea of this). On the other hand it will increase her actual weekly rate so will work better for getting another job.

So she was going to be paid £x for 40 weeks + 5 weeks holiday. She is now going to be paid £y for z weeks + 5 weeks holiday.

Is it as simple as working out how may weeks of those 40 weeks she will now work, and then working out what the weekly pay would have been and paying that now as the weekly wage for however many weeks there are now.

So if it was £18,000 for 45 weeks = £400 per week, paid at £1500 per month.
It was now 32 weeks + 5 weeks = 37 weeks, so 37 x £400 = £14800
Then would you deduct what had already been paid, then spread the remainder over the remaining weeks.

Sept and Oct already paid, so £3000 paid, so leaving £11800 to pay November, Dec, Jan, Feb, Mar, Apr, May.
The last month maybe needing adjustment depending on the leaving date.
Is that how it's done?