|Frequently Asked Questions|
Q: What are my responsibilities as an employer?
You are required to set up a PAYE scheme with HMRC, make the correct deductions from your carer's gross pay, and pay Tax and National Insurance Contributions to HMRC on a regular basis.
By law you must have employer’s liability insurance cover of at least £5 million, and you must also ensure that you pay your carer at least the National Minimum Wage or above. In addition you need to have a good understanding of the basics of employment law and statutory entitlements.
Aside from the employer's liability insurance, Enable Payroll can help with all of the above - and much more! Read more about the Enable Payroll service.
Q: Can my carer be self-employed?
Q: Net or gross wage agreements: what's the difference?
The net wage is the amount your carer gets paid in their pocket or bank account each pay day. The gross wage is your carer's net pay plus income tax plus employee's National Insurance contributions.
Read more about net and gross pay and how a net wage agreement could seriously damage your wealth.
Q: How do I calculate how much holiday my carer is entitled to?
If your carer works part-time they are entitled to a pro-rata equivalent. Their annual entitlement can be calculated by multiplying the number of days they work per week by 5.6. For example, a carer working 2 days a week would accrue 11.2 days holiday per year:
2 x 5.6 = 11.2
If your carer works a different number of hours each week, please see the Q&A directly below. For more information on holiday entitlement, including examples of calculations for part-time and temporary workers, please refer to the holiday entitlement page.
Q: My carer works variable hours, how do I calculate their holiday entitlement?
192 / 12 = 16 x 5.6 = 89.6 hours
If you need any help calculating holiday entitlement please contact us.
Q: My carer is pregnant - what do I do?
As a small, domestic employer you can usually reclaim all the SMP costs from the state. Your carer should provide you with a Maternity Certificate (MATB1) for this purpose. This is issued 20 weeks before the baby's due date and your carer can ask their doctor or midwife for it.
At Enable Payroll, we will ensure that things run as smoothly as possible and can claim the maternity pay for you in advance to make sure you're not unnecessarily out of pocket.
Your carer is entitled to up to 39 weeks SMP and a further 13 weeks of unpaid maternity leave before returning to work. Please refer to the Statutory Maternity Pay page for more information. The current SMP rate is published on the Rates and Thresholds page.
Q: My carer is ill - can he get sick pay?
As a small, domestic employer you are entitled to Small Employer's Relief, which means you can claim back a proportion of the SSP paid. If you use Enable Payroll we will calculate and apply the current formula on your behalf. SSP is claimed back by a deduction from your National Insurance contribution liability for the quarter in which the absence due to illness occurred. This means that your payments to HMRC will be reduced for that quarter.