Hi,
I'm going to start working a nanny for two families and it will be:
9/10 hours per week with one family
12/15 hours per week with another family.
I'm wondering how it works for tax declaration? How am I going to pay tax if any?
For the ATO I'm australian for tax purposes.
Looking forward to hearing from you.
Hello @Cott,
The way the tax is dealt with for your nanny jobs depends on what the agreement is between you and the families.
If you're working as a sole trader then you'll provide an invoice for your services and the tax will be dealt with when you declare the income on your income tax return. If you're working as an employee and the families are hiring you, they may pay you the salary and send the tax to the ATO.
If you're being hired under salary and wages you're a tax resident then you should claim the tax free threshold from your highest earning job. If you select tax free threshold on both jobs you may end up not having enough tax withheld for your tax return.
You can read more about withholding from household employees on our website.
Hello @Cott,
The way the tax is dealt with for your nanny jobs depends on what the agreement is between you and the families.
If you're working as a sole trader then you'll provide an invoice for your services and the tax will be dealt with when you declare the income on your income tax return. If you're working as an employee and the families are hiring you, they may pay you the salary and send the tax to the ATO.
If you're being hired under salary and wages you're a tax resident then you should claim the tax free threshold from your highest earning job. If you select tax free threshold on both jobs you may end up not having enough tax withheld for your tax return.
You can read more about withholding from household employees on our website.
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