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Paid childcare

Discuss everything related to paid childcare here, including childminders, nannies, nurseries and au pairs.

Nanny share

3 replies

itsaboojum · 16/10/2019 07:34

If two families agree to a nanny share, how do they set up contracts, payroll and agree terms with the nanny?

Is there a single contract or does the nanny have a contract with each family?

If it’s a single contract, is that made with both familiEs as co-signatories, or does the nanny contract to one family only, with the other family acting as a sort of adjunct to the arrangement?

OP posts:
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8by8 · 16/10/2019 07:37

It gets quite complicated, especially when it comes to working out how much of the tax each family pays.

You’re best off taking advice from one of the nanny payroll companies, they usually have standard documents you can use.

Blubluboo · 16/10/2019 09:34

I've done both in the past but I believe the best way now is to have separate contracts. I'm not sure why!
Then the families sign a family agreement between each other.
Some nannies say you should be paid minimum wage from each family but there are ways around this (I am a nanny and I don't get min wage from each family) but I believe I get a fair wage considering they have 1 child each. A lot will depend on location too.

nannynick · 16/10/2019 14:24

With two contracts there is a saving in National Insurance, whilst that may not much at first it is surprising how much is saved over a year.
Two contracts can give rise to an issue with minimum wage, thus a single contract with you are joint employers may be a way around that, or having one family employ in the morning and the other employ in the afternoon. Plus a nanny getting £15 an hour isn't really likely to complain about not getting minimum wage, in my view.
Two contracts also benefits the nanny if they become pregnant, as they can then qualify for two lots of Statutory Maternity Pay (which is paid by Government).
Less money goes to pensions with two employments due to Qualifying Earnings threshold for each employment, so something the nanny may not want, but easily resolved by doing pension on full wages not QE.
There are pros and cons so discuss with your nanny payroll provider and your prospective nanny.

The biggest problem on nanny shares is holidays. Both families must take holiday AT THE SAME TIME for the nanny to get holiday.

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