It is vital that as an employer you know the total cost of having a nanny but with nannies still talking in ‘net wages’ it can be difficult to work it out.
The calculator below will help you work out the Total Cost from the nanny’s Net Wage.
The Total Cost is what your total outgoings will be regarding the nanny’s salary and it is made up of the following;
Childcarers Net Pay + their Tax and NI = nanny’s Gross Pay + Employer’s NI Contribution = Total Cost.The figure provided is for guidance only, the actual total cost to you will be affected by factors such as:
At what point in the tax year you employ your nanny;
Whether s/he has another job at the same time as working for you;
Whether your nanny is living in or not
What benefits in kind you are providing, such as health insurance, use of a mobile phone and/or use of a car outside work hours.
Tax calculator has been provided by Way2paye, contact them on 01604 743346 www.way2paye.co.uk if you have any queries.
Lemonjelly strongly advises employers and nannies to agree GROSS salaries.