Hiring a nanny- quick contract questions

[Smerlin]

Just had a few quick questions on setting up a nanny contract that I hoped some experienced nannies/employers could answer:

• How do you calculate holiday? I will be employing a term time only nanny (193 days a year in my school) who will be working 3 days x 10 hours a week. I know you multiply by 5.6 but how does the fact they are not working all year round work? She will take her 'holiday' in school holidays but I need to work out how many days to pay her for

• How is mileage reimbursed? Does this come through your payroll?

• What sort of house rules are usually provided as an appendix to the contract?

-Anyone had a term-time contract? Can you get the pay annualised so it's the same amount each month? Nanny would prefer this as otherwise she gets nothing over the summer, makes it easier for us to keep track of too but can it be done?

Thanks!

1. Try this:

www.gov.uk/holiday-entitlement-rights

1. Mileage is not payable via childcare expenses nor is she taxed on it. HMRC allow a max of 50p per mile to be reimbursed & this does not go via the payroll co. It comes straight from you.

1. House rules - Respect your privacy. I've signed one that stipulated nothing heard within your home to be repeated to others.

1. Yes you can get the pay annualised - this is what you are paying the payroll co to do. This is an easy task for them.

12.07% x annual hours
That will give minimum holiday entitlement.
For a full time worker, 5.6 weeks (28 days) is 12.07% of their total working days.

Now I am no longer mobile... a bit more detail for you.

• How do you calculate holiday? I will be employing a term time only nanny (193 days a year in my school) who will be working 3 days x 10 hours a week.

Is 193 days roughly a 39 week year? Seems to calculate at 38.6 but your nannies working weeks may work out to be a whole number.
Probably worth going through a calendar and working out the total number of days your nanny will work for this coming academic year. Is the job starting at the beginning of the academic year (August/September)?

You would then calculate holiday as:

total working days (or hours) / 12.07

So if the days was: 117, then they would get 14.12 days holiday. That can not be rounded down, it can be rounded up. Rounding up to a full day is a nice gesture, as finding term time only nannies can be quite tricky.

You can then stipulate in the contract that holiday is taken outside of school term time.

Consider what happens on a bank holiday during school term time - there is often at least 1 that occurs. That could be taken as annual leave if it falls on a working day (so if the nanny is working on Monday's then that is likely to happen), or would you need them to work that day... so have counted it into the total working days?

• How is mileage reimbursed? Does this come through your payroll?

HMRC: Mileage Rates You can pay up to 45p per mile for the first 10,000 work miles per year. Mileage needs to be recorded, such as date, destination, start/end mileage. You will need to report the total miles done plus the amount paid on one of the employer return P35.

It will say something like:
-=-
If you have provided a mileage allowance for BUSINESS travel, please state:

1. The rate (in pence per mile)
2. Approximate number of miles reimbursed (e.g. for travel with the children)

Additionally, have you provided the employee with travel or subsistence allowances, or payment for fuel in addition to or instead of any mileage allowance declared above? -=- I think the last question should be answered NO, if it is a yes I think it then means that payment may be a taxable benefit. Your payroll provider will be able to assist.

Payment of mileage would be made direct to the nanny. I would suggest doing it monthly, in return for getting a monthly mileage log. Personally I email mileage logs to my boss, that way we both have it in our records.

-What sort of house rules are usually provided as an appendix to the contract?

Not sure on that one. Do you need anything specific?

-Anyone had a term-time contract? Can you get the pay annualised so it's the same amount each month?

Yes, it is fine to calculate it as annual salary and split into 12 payments. It can cause a problem if they leave part way through an academic year as you would need to calculate the correct amount for the work that had been done.

Thanks nannynick - excellent comprehensive advice as usual