Your nanny family let you go. You think to yourself: how do I get unemployment benefits? The working arrangement between you and the family is considered employment at-will under U.S. common law unless the written work agreement specifies a term of contract (which is a horrible idea). In broad terms, at-will employment means that employment is… Read more »
According to the U.S. Congressional Budget Office, one third of seniors aged 65 and over need some assistance with the activities associated with daily living. Facing the need for senior home care is often greeted with resistance and disappointment by the senior herself, and concern and worry on the part of her family members. Before an… Read more »
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 »
Why Should I Pay Nanny Taxes In-home care is expensive. After the family’s mortgage payment, the nanny or home health aide salary is often the biggest expense in the household. Add the cost of taxes on top of this and many families wonder “Why?” If I don’t pay the taxes the nanny keeps more money,… 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 »
A little preparation and a few hours of new employee orientation greatly improve the comfort level of both the nanny and family. Before the nanny starts make sure you have all of her personal contact information as well as information you need for payroll processing – a completed W-4 form with her Social Security Number… Read more »
You landed a new job but you’re getting paid by the hour. You can’t help but ask yourself: “why does my nanny family give me hourly pay? I want a salary.” Nannies and other domestic employees are classified under the Fair Labor Standards Act (FLSA) as non-exempt. The term non-exempt employee refers to a worker who IS subject to the… Read more »
