Nannys Certificate of Employment by uzr88019


Nannys Certificate of Employment document sample

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Friendly & Efficient Payroll Service

                                   a Nanny
Employing a Nanny
  Employing a Nanny must be one of the most stressful tasks anyone can undertake,
  but unfortunately your responsibilities don’t stop there, in fact they have only just
  started. Once the Nanny has accepted the position there are a few important issues
  you need to address -
  1. Contract of Employment
  2. Registering with the Inland Revenue
  3. Net Salary and Gross Salary

Contract of Employment
  Legally, employees must be issued with what are called written particulars of
  Employment within 2 months of commencement of employment. The written
  particulars of employment are;
  - Names of employer and employee
  - The date when employment began
  - Annual/Monthly or Weekly salary and interval when paid
  - Hours of work
  - Over time requirements and method of payment (additional pay/time off in lieu)
  - Holiday entitlement
  - Sickness entitlement
  - Length of Notice required on both sides to terminate the contract
  - Title of the job
  - Place of work
  - Details of disciplinary and grievance procedures

Inland Revenue
  Not only do you need to provide the salary details within the Contract of Employment
  you are also required by law to register as an employer with the Inland Revenue and
  operate a PAYE scheme if your Nanny earns more than £89.00 per week (tax year
  2003/2004). This means that as an employer you have a number of obligations you
  must fulfil with the Inland Revenue, they are;

Responsibilities on employing a Nanny
  - Register with the Inland Revenue as an employer.
  - Your Nanny would need to provide you with a P45 so that you can prepare the P11
    or complete a P46 to send to the Inland Revenue.
  - Fill in details as requested on the P11 - Employee’s name, National Insurance
    number etc. Record the contribution table under which NICs are due in the end of
    the year summary. Record the appropriate code etc.
  - If your Nanny does not have a National Insurance number your will be required to
    apply for this.
Responsibilities during the Tax Year
  - You must deduct the correct amount of Tax from your employee’s pay.
  - Work out how much National Insurance Contributions you and your employee have to pay.
  - Issue weekly/monthly wage slips.
  - Keep a record of your employees Pay, Tax and National Insurance Contributions.
  - Work out any SSP payments or even SMP payments.
  - Make monthly (or quarterly) payments of the total, Tax and National Insurance Contributions
    due to the Inland Revenue accounts office.

Responsibilities at the end the Tax Year
  - Send a return to the Inland Revenue office showing details of your Nanny’s total pay and
    Tax and National Insurance Contributions due.
  - Send details to the Inland Revenue office about certain expenses your have paid to your
    Nanny, or benefits you have provided them with.
  - Give your Nanny a certificate showing their Pay, Tax and National Insurance Contributions
  - Give your Nanny a copy of the information you have given the Inland Revenue office
    about their expenses payments and benefits provided.
  Unlike the Contract of Employment you do not have 2 months to register with the Inland
  Revenue this needs to be done immediately. Failure to register even on a temporary basis
  when paying a wage above the weekly threshold is an offence.
  By the way, self-employment is NOT an option for a Nanny employed by you. Unfortunately a
  Nanny does not meet the Inland Revenue criteria for self-employment. If your Nanny is working
  for 2 families this is classed as a Nanny share and therefore different rules apply, please ask
  for our Nanny share information leaflet, which explains your obligations in more detail.

  Nanny thinks NET SALARY - Parents thinks GROSS SALARY
  During the interview and on acceptance you will have noticed that your Nanny and his/her
  agent will have negotiated a weekly or monthly salary in Net terms. The Net salary is what the
  Nanny is left with after Tax & NI has been deducted. You however, as the employer need to
  be working in Gross figures as you have a legal obligation to collect the Tax & NI contributions
  for your Nanny and pay them under the PAYE scheme to the Inland Revenue.
  The Gross figure is calculated by adding the appropriate Tax & NI contributions to the Net
  salary you have agreed to pay your Nanny.
  Nanny Net Salary (take-home pay) + Tax + N.I. = Gross Salary

Employers NI Contribution
  As a new employer you are also responsible for paying Employer’s NI contribution. This is
  not part of the Gross cost and should be taken into consideration when you are calculating
  the overall cost of employing your Nanny.

  For example (figures based on an annual Salary of £12,100)
  Nanny Weekly Net salary (take-home pay)       = £190
  Gross cost (Tax & Employees NI)               = £233
  Total Cost (includes Employers NI)            = £251
Nanny Deductions at your Service!
  If you have enough time to Work, Rest, Play and do the Nanny’s Deductions then all
  you need to do is spend time learning how to operate the PAYE scheme.
  You may understand the basic principles of PAYE, but are you up to date with latest
  tax bands - let alone Statutory Sick Pay and Statutory Maternity pay.
  Unfortunately the Inland Revenue come down hard on incompetence and neglect,
  therefore, you can’t afford to get it wrong.
  I’m sure you would rather spend more time with the Children or on a Hobby...
  Life’s too short!!

  Nanny Deductions operate a Payroll service for parents who employ a Nanny. For just
  £3.46 per week we can give you peace of mind.

  We do Everything;
  - Register your Nanny with the Inland Revenue.
  - Keep complete payroll records on your behalf.
  - Send you monthly wageslips for your Nanny showing all statutory deductions
    (tax and NI).
  - Issue and process P45’s whenever a nanny joins or leaves your employment.
  - Send you every three months, a summary of Tax & NI due to the Inland Revenue
    for quarterly payment.
  - Complete and send to the Inland Revenue the Annual Return, on your behalf, at
    the end of each tax year.
  - Provide you with a complete annual payroll summary (P60) for your Nanny.
  - Provide a FREE friendly helpful advice line on all pay-related aspects of employing
    a Nanny including any changes in legislation.
  - 24 hour Answer Machine Service for all out of hours calls.
  We also guarantee that if your Nanny leaves within the 12 months period we will
  freeze your account until you replace your Nanny.

  To open an account with Nanny Deductions all you need to do is
  complete the enclosed Joining Form and send it with the annual
  joining fee of £180.00.

               Friendly & Efficient Payroll Service

  Nanny Deductions
  PO Box 5559, Northampton NN6 8YY
  Tel: 01604 743903/4          Fax: 01604 743902

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