Your Obligations as an Employer
Taxation
According to the Australian Taxation Office:
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"Under Pay As You Go (PAYG) withholding, you may be required to withhold amounts
from payments you make to your household employees, such as nannies or housekeepers. The
amounts withheld are sent to the Australian Taxation Office (ATO);"
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"You will need to withhold amounts where you make a payment of salary or wages to
an employee. If you are not sure whether your worker is an employee or contractor refer to
Taxation Ruling 2000/14 or the brochure Status of the worker."
This
ATO Fact Sheet contains information regarding withholding tax for household employees.
Alternatively, you can call the Australian Taxation Office on 132 478.
Superannuation
According to the ATO, "You don't have to make superannuation contributions for some employees.
These include employees who are:
- paid less than $450 in a calendar month;
- aged 70 years of age and over;
- under 18 years of age and working not more than 30 hours a week;
- covered by a Bilateral Superannuation Agreement; or
- performing work of a domestic or private nature for not more than 30 hours a week e.g.
part-time nanny or housekeeper for a non-business employer."
In all other cases, you must make superannuation contributions on behalf of your employee.
For further information on your obligations as an employer of household workers go to
Superannuation Obligations - Household Employees
Workcover
Household worker insurance is indispensable is you engage people
to be employed in your home. Please visit our useful
links page for more information.
Workplace Agreement
We highly recommend a workplace agreement which highlights both parties' expectations of the following:
- weekly or hourly pay rate, car allowance if applicable;
- tax, superannuation and work cover insurance;
- days, hours of work - start and finish times;
- specific duties and any additional duties;
- overtime rates for working outside set time;
- annual recreation leave, sick leave, special leave, pay on public holidays etcetera;
- conditions of salary review;
- conditions of termination.
A candidate-family agreement sample is available from Milestonz International for all registered
families
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