The household employment experts blog

Nanny Social Security Rate Decrease

This is a reminder that the nanny’s (employee’s) Social Security Tax Rate is reduced to 4.2% for 2011. According to Internal Revene Service guidance, all employers must be making correct payroll tax deductions no later than January 31, 2011 and they must make refunds to the employee of any over-collected Social Security Taxes on wages paid in 2011 by that date.

Nanny Awarded $30K Unpaid Overtime

Actor Robert DeNiro and wife Grace Hightower settled a longstanding legal dispute with their former nanny, who sued for unpaid overtime and holiday pay. Barry’s original court filing in Manhattan in 2009 sought $40,000 in unpaid wages. The $30,000 settlement, agreed to by all parties, represents unpaid overtime alleged to total 750 hours and holiday pay for a 9 month period of employment from 2006 – 2007.

Nanny Employment Termination: Return of Family Property

Note: Special thanks to our guest blogger, Bob King, for his discussion below on nanny employment termination and the return of family property.  Bob is an attorney and founder of Legally Nanny, the leading law firm providing legal and tax advice to household employers.

Illinois Nanny Withholding Tax Rates Updated

Illinois Governor Quinn signed legislation on Thursday, January 13, 2011 that increased income taxes for Illinois residents.

Caution: Carefully Word Your Nanny Work Agreement

Many families (and agencies) use nanny work agreements that cover a specific period of time, generally one year. This is NOT a good idea. In a complicated United States District Court, D. Oregon case, the court affirmed that nannies are indeed non-exempt employees and are entitled to hourly pay and overtime pay for hours worked in excess of 40 in a work week.  

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