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Understanding Advance Payments: A Guide for Families
Understanding Advance Payments: A Guide for Families

Helping families understand what an Advance Payment is and how it works

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Written by Support
Updated over a week ago

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What is an Advance Payment?

At Koru Kids, we strive to ensure a secure and transparent process for both families and nannies. An advance payment is a pre-payment that families make to cover four weeks' worth of childcare services when they agree to work with a nanny through our platform.

For example, if your nanny has been offered 9 hours per week your advance payment will be: (9 hours) x (hourly rate) x (4 weeks) = Total advance payment.

When is the Advance Payment Paid?

Families are invoiced for the advance payment approximately four weeks before the scheduled start date. This invoice is processed through direct debit and will be charged within 5-7 days. If the arrangement is set to begin in fewer than four weeks, the family will be invoiced as soon as the job offer is accepted.

Will the Advance Payment be Used Against the First Invoice?

No, the advance payment is not applied to the first invoice. Instead, it will be used against your final invoice with your nanny when your arrangement ends. Any remaining funds, after covering the nanny's final hours and notice period, will be refunded to you within 2 weeks of receiving the final invoice.

NB: Our pay cycle runs from the 26th-25th of each month. Please bear this in mind as it may effect when your final invoice is issued and your advance payment is used.

I Have Received My Final Invoice - Why Has the Advance Payment Not Been Used?

We send out the invoice estimate on the 27th of each month and a final invoice on the 30th/31st

Please be assured that the invoice estimate does not reflect your advanced payment as this is a manual adjustment and this will be reflected more clearly in your final invoice.

Why Do We Require an Advance Payment?

The advance payment serves as a guarantee for the nanny. Since nannies are paid in arrears, the advance payment ensures that we are able to issue a nanny's final pay when the arrangement concludes. It is a further reassurance for nannies that they will not be left with unpaid hours.

When is the Family Informed about the Advance Payment?

Families are informed about the advance payment at two key stages:

  1. Job Offer Creation: When families create a job offer, they will receive a notification, highlighting the requirement to pay an advance payment.

  2. Email Notification: Once a job offer has been accepted, we send an email to the family, outlining the details of the advance payment and when it is due.

What If My Arrangement doesn't go Ahead?

If, for any reason, the arrangement ends before it begins, rest assured:

  • If the advance payment hasn't yet been processed by a direct debit, we will void the invoice.

  • If the advance payment has been paid or is processing a full refund will be issued as soon as possible.

Do I Have to Pay a New Advance Payment for a New Nanny?

Yes, an advance payment is required for each nanny employed through our platform. If you are hiring a new nanny through Koru Kids, unfortunately, we are unable to transfer an advance payment from one nanny to another.

However, if you would like to delay the date of the new advance payment until everything has been settled with your previous nanny please contact us, and we'll be happy to assist you with this.

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