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Knowledge Center

Nanny Employers

  • I hired a nanny. What about household employers workers’ compensation and disability insurance?

    SUMMARY: State insurance regulations determine when household employers workers’ compensation and disability insurance are required. The rules vary by state. We recommend meeting with a licensed insurance broker to review all of your insurance needs when you become a household employer. HWS has a licensed insurance partner who will provide HWS clients a no obligation… Read more »

  • What may happen if I do not pay the nanny taxes?

    What happens if I don’t pay for my nanny taxes? Failure to report wages paid to a domestic service worker – including a nanny, senior caregiver, housekeeper and more – and failure to pay the nanny taxes compromises the validity of your personal income tax return. These taxes are included on your personal federal income… Read more »

  • Is Health Insurance for My Nanny or Senior Caregiver Taxable?

    Many employers understand that key benefits such as employer paid health insurance is an important employee recruitment and retention tool. Is health insurance taxable? Household employers with fewer than 50 household employees may reimburse health insurance premiums obtained in the individual marketplace on a tax free basis utilizing either a Qualified Small Employer Health Reimbursement Arrangement... Read more »
  • Great Options for Nanny Health Insurance Coverage

    More and more we’re seeing nannies asking about how to get health insurance built into their compensation packages; we’re seeing many more employers asking how they can help too. That’s great! Just how to go about doing it is where things get confusing. Let’s consider the question: what’s a good option for nanny health insurance… Read more »

  • What about tracking the nanny’s hours? What is required?

    Fair Labor Standards Act (FLSA) states that due to the nature of their work and duties, nannies and other household workers are employees, are hourly workers,  and are covered by minimum wage and overtime laws. The FLSA requires employers to maintain accurate and complete contemporaneous time records for tracking hours worked by an employee. When… Read more »

  • How can I help my nanny build a retirement savings account?

    There are some practical ways an employer can help their nanny build a retirement savings account. The SEP-IRA Employers can set up a SEP-IRA to help build a retirement savings account for their nanny. The contributions are 100% funded by the employer. Sometimes employees will ask to ‘defer’ a raise and have the $50 or so… Read more »

  • How do I calculate overtime for my salaried nanny? What about compensation for occasional overnights?

    Most regular nannies are paid on a guaranteed pay basis. What this typically means is that the family agreed to pay the nanny a pre-determined salary for a given number of hours in a pay period. The full time nanny work schedule is often more than 40 hours per week. It is important to remember,… Read more »

  • My nanny wants net take home pay of $600 a week. What does that mean?

    Many household employees, including nannies, expect to negotiate a “net wage” or “net take home pay” agreement with their employer. The net take home pay agreement is a foreign concept for many nanny employers, and often the new employer does not fully understand the financial implications of a net pay agreement with the nanny or… Read more »

  • How frequently do I need to pay my household worker? My nanny wants to be paid weekly. Do I need to do that?

    The pay frequency of a nanny or senior caregiver (and all hourly, non-exempt employees) – the maximum interval between wage payments to the worker – is governed by state law. Nanny pay frequency regulations are summarized below. Payroll calculations for your household employee (nanny, housekeeper, maid, senior caregiver, etc.) are governed by the Fair Labor Standards Act…. Read more »

  • Are there tax breaks for dependent care? Does this apply when I hire an in-home caregiver?

    There are two popular strategies that families employing nannies or senior caregivers use to minimize their personal income taxes. Many families can utilize a flexible spending plan (cafeteria plan) offered by their employer for child and dependent care expenses. Your employer’s human resources department can provide you with plan details. Another strategy is the Child… Read more »

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