LEGAL OBLIGATIONS

As the carers work in an unregulated field there is no official award rate of pay or conditions set by any government for childcare workers working in private homes.

There is an award rate for childcare workers in childcare centres. Rates vary depending on qualifications and experience, see below. .

$14.28 to $18.84 per hour casual rates
$12.44 to $16.39 per hour part-time
$476.40 to $622.70 per week for 38 hours

Saturdays are paid at time and a half
Sundays at double time.
Public holidays at double time and a half.

5-10 full days of sick pay per annum, 4 weeks annual leave with 17.5% loading + 9% super in line with the Superannuation Guarantee Levy.

These rates are used as a guide to calculate a wage for the child carer, including entitlements. Or you can call wage line 13 16 28

Child carers are an important part of your family. If they are valued for their contribution to your children’s lives then they should be paid accordingly. This includes superannuation, annual leave and sick pay. A valued employee who is treated with respect and paid a reasonable wage is more likely to be a long term employee, which reduces disruption to your household and the need for training new staff.

Worker’s Compensation

Under NSW law you are required to pay workers compensation insurance. The carer is classed as a worker because

• You direct the carer as to how the work is to be preformed and the time and manner in which it is to be performed.
• The carer actually carries out the work
• The carer is paid on a time basis
• You supply the tools and materials.
• The carer may exclusively for you
• Is subject to PAYG tax arrangement

The insurance cover for the carers comes under Household Workers Insurance, available through the following insurance companies:
Allianz Australia Workers' Compensation (NSW) Ltd Ph: 132 664.
CGU Workers Compensation (NSW) Ltd Ph: 8224 4214.
Employers Mutual Indemnity (Workers Compensation) Ltd Ph: 9229 7900; 1800 469 931 (rural areas only).
GIO Workers Compensation (NSW) Ltd Ph: 1300 654 145
NRMA Workers Compensation (NSW) Pty Ltd Ph: 132 818
NRMA Workers Compensation (NSW) (No 2) Pty Limited: 132 818.
QBE Workers Compensation (NSW) Ltd Ph: 9375 4444; 1800 112 472 (rural areas only) .
Royal & Sun Alliance Workers Compensation (NSW) Ltd Ph: 8275 3777.
Zurich Australian Workers Compensation Ltd Ph: 9391 1300; 1800 043 102

The cost is approximately $40 per annum. For more information you can contact Workcover on 13 10 50

Every family should have Workers Compensation insurance, even for occasional care. Accidents can happen. If you are not covered and a carer makes a claim you may be fined $22,000 and face 6months imprisonment and have to pay twice the amount of premium that was owed for the period the employee was uninsured and be liable to pay for all the costs associated with any claim for workers compensation which occurs during the period the employer was uninsured.

Tax

What a horrible word. But every one has to pay it and, yes child carers have to pay it also.

Your carer is an employee and you are the employer. As an employer you are obligated to take tax out of his/her pay just like all other employers have to do with their employees (P.A.Y.G.).
The ATO (Australian Tax Office) classifies a carer as an employee as he/she is an individual who receives payment in the form of a salary or wage in return for labour or service. You are also an employer if you employ workers under contract verbal or written on a full-time, part-time or on a casual basis which is wholly or principally for labour or if you have some control over your employees or if you are responsible for the payment of wage or salary and have the power to dismiss or hire employees.

The practice of paying cash under the table is illegal and it is unfair to the carers. If he/she requires a loan for a new car, house or for investment purposes, then he/she will need proof of earnings using a payment summary (Group Certificate). Also if your carer is in a car accident and won’t be able to work again, their earnings will not be taken into account when calculating loss of earnings or future loss of earnings.

Carers are not independent workers. To be self-employed or independent a carer would have to work the hours he/she wants, leave when he/she wants, state how much he/she earns, supply the equipment, and decide what to do with your children. The carer would have the power to freely hire other people to perform the work when she wants. Nannies/child carers do not work like this and therefore are classified as employees.

A good child care worker will work the hours you require, leave when you require, the carer comes to you and you decide what the carer will do with your children.

You will be obligated to take tax out of a carers pay if she earns more than $114 per week* (excluding agency fees) even for the occasional babysit, live-in, live-out or temporary positions.

You will not be required to take any tax or pay workers compensation insurance if you require a tax invoice and pay Care for Kidz direct.

Nanny Pay

We work in association with an organisation that is happy to take care of all the dreary paperwork and calculations regarding pay, tax and superannuation on your behalf.

For a small fee, you need only submit the timesheets for your employees and all the necessary records will be maintained by Nanny Pay.

This service is particularly valuable for busy people with small children as using your rare free time to ensure that you are compliant with record keeping requirements and paying your staff on time is much less rewarding than spending it enjoying your children.

For more information on Nanny Pay, please contact (07) 3269 2994

For more information about your tax obligations you can contact the ATO on 13 24 78 or www.ato.gov.au or www.taxreform.ato.gov.au or speak to your accountant.

*Only applies if you are the sole employer contact the ATO for more information or speak to your accountant.

Superannuation

Superannuation is compulsory for all employees. The amount is 9% of the gross wage. This also includes nannies and child care workers. The amount is only to be paid if the employee works more than 30 hours per week.

Care for Kidz provides your children with the very best care available. In order to achieve this, the employer will need to abide by all legal obligations as experienced and qualified carers would expect. Good nannies/child carers are scarce. If they receive the benefits to which they are entitled it is more likely they will remain in your employ for the long term which will benefit you and the children.

For more information about superannuation you can contact the ATO on 13 10 20 or www.ato.gov.au or speak to your accountant.

Working with young children check

There is a new law & commission in NSW called Commission for Children and Young People Act 2000.

This new law ensures the suitability of people who are seeking employment in any industry that works with children are suitable and it is called "the working with children check"

A carer who seeks employment as a nanny must been screened by the agency DOC’s. Any person who wants to work as a nanny will have to fill out a consent form for a “working young children check”. This check will consist of, criminal history, apprehended violence orders and prior employment checks, including relevant disciplinary proceedings performed before they seek employment through us.

The working with children check is a federal check.

For more information about Working with Young Children Check please phone the Commission on 02 9286 7220 or www.kids.nsw.gov.au

Motor Vehicle Insurance

CTP

Compulsory third party insurance is paid when you pay your car registration. This insurance covers you and passengers for injuries sustained in a motor vehicle accident. It is not usually paid for injuries sustained by the driver at fault. Passengers are covered, but they are only covered if the car is registered and the driver at fault is in a registered car. If a carer or child/children have been injured in a car accident during employment then please seek professional advice from your lawyer.

Comprehensive Insurance

If your carer will be driving your car during employment you may need to add him/her to your insurance policy. In the case of an accident you might not be covered even if it’s not your fault. Please check with your insurance company, broker or agent about your policy before you let any carer driver your car, especially if the carer is under 25 years of age.