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 »
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 »
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 »
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 »
When you hire a nanny you may qualify for a childcare related personal income tax breaks. There are two popular strategies that families with child care expenses use to minimize their personal income taxes and are in addition to the Child Tax Credit, which in 2018 rose to $2000 per child and is available to… Read more »
What is new hire reporting exactly? The Personal Responsibility and Work Opportunity Act of 1996 requires that all employers file a new hire report on all newly hired workers and re-hired workers within a specified period, generally 2 weeks, or incur a financial penalty. Each state has designated an agency responsible for the collection of… Read more »
In general, the Internal Revenue Service (see §119(a)) allows you to exclude from income the value of meals and lodging furnished by the employer when hiring a live-in nanny or household worker (nanny room and board), provided the following conditions are met: Meals and lodging (room and board) must be furnished on the business premises… Read more »
When you share a nanny with another family, both families become employers. Presuming that you each pay the nanny for the work performed for your individual family, each employer is responsible for withholding nanny share payroll taxes and the periodic remittances of payroll taxes. Nanny share payroll taxes can be confusing, especially if you are… Read more »
Many families hire temporary nannies or other temporary household workers and have many questions about their financial and legal responsibilities. Examples include the temporary nanny who is working while the mother is on bed rest, the respite senior caregiver staying with an aged family member while you are away for work or vacation, or the… Read more »
