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Can you hire a nanny using sole trader ABN?

Newbie

Views 1489

Replies 3

Hi all-

I hired a nanny so I could go to work. I withhold tax, pay super etc. I used my pre existing ABN.
I literally can't find anything on any of the websites about this. Have I done the wrong thing?
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

You'll need to work out if you are emloying her or if she is working as a contractor. There's some really good info on the website - you may need to withhold tax from payments you make to your household employees for providing domestic services. This includes nannies, carers, cleaners, gardeners, housekeepers or support workers directly employed by participants in the national disability scheme.

 

You can do this witthout using an ABN in some cases but you still need to witthold and pay super etc 

 

https://www.ato.gov.au/business/payg-withholding/in-detail/withholding-from-payments-to-household-em...

3 REPLIES 3

Devotee

Replies 2

I'm confused, have you hired her as an employee or are you just paying for her services? I would think you would pay her and she sorts out her own tax withheld etc.

Newbie

Replies 1

She's an employee. She doesn't have an ABN herself so I'm obliged to withhold tax and pay super.

Most helpful response

Devotee

Replies 0

You'll need to work out if you are emloying her or if she is working as a contractor. There's some really good info on the website - you may need to withhold tax from payments you make to your household employees for providing domestic services. This includes nannies, carers, cleaners, gardeners, housekeepers or support workers directly employed by participants in the national disability scheme.

 

You can do this witthout using an ABN in some cases but you still need to witthold and pay super etc 

 

https://www.ato.gov.au/business/payg-withholding/in-detail/withholding-from-payments-to-household-em...