Knowledge Center

Nanny Employers

• 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, […]

• 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 […]

• 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. […]

• 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 […]

• I have heard that I may qualify for childcare related personal income tax breaks? Does this apply when I hire a nanny?

  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 […]

• What is New Hire Reporting? I just hired a nanny.

  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 […]

• We are hiring a live-in nanny. How do you figure her room and board for tax purposes?

  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 […]

• Do I need a nanny contract or work agreement?

  A nanny contract or work agreement is not legally required under Federal law, but you SHOULD take the time to write one up anyway. It is a best practice that protects the family and provides a point of reference to both parties when there are questions or misunderstandings. A written nanny work agreement helps the […]

• How do we handle nanny share payroll taxes with another family?

  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 […]

• What are my tax responsibilities with a temporary nanny? She only worked for us for six weeks while my wife was on bed rest.

  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 […]