Arizona does not allow withholding to be deducted or retained from wages paid for domestic service in a private home. This does not mean that AZ income taxes are not due on these wages, it simply means the employer is unable to withhold and remit them for their household employees. If my employer cannot withhold my… Read more »
If you’ve recently hired a nanny and agreed to compensation based on take-home pay (net pay), you may have noticed getting a consistent cost of payroll is more challenging than you anticipated. Here are some reasons you can’t guarantee your nanny the same net pay every time. Income Fluctuation Your nanny is an hourly employee by law, which means… Read more »
Does having a nanny share job change my payroll and taxes? When you work in a nanny share arrangement with two families, both families become employers. Presuming that each pay you for the work performed for their individual family, each employer is responsible for withholding nanny share payroll taxes and the periodic remittances of payroll taxes…. Read more »
NOTICE: Effective March 8, 2016 the 9 FAM 402.3-9(B)(4) notes have been updated to reflect a change in wage requirements for G-5 domestic workers, as well as A-3, B-1, and NATO-7 domestic workers. Effective immediately, all contracts for domestic workers must state an hourly wage to be paid to the domestic worker, and the rate must… Read more »
The U.S. Department of State allows aliens who are diplomats, staff of certain international organizations (often referred to as NGOs or Non-Governmental Organizations), and NATO staff to bring into the United States their servants, personal attendants and other domestics provided certain conditions are met. The US Department of State’s Foreign Aid Manual (9 FAM §41.21,… Read more »
Efforts by workers’ rights groups to educate about New York’s Domestic Workers Bill of Rights have resulted in a big uptick in unpaid overtime claims filed against household employers. Advocacy groups are actively canvassing New York City neighborhoods – in playgrounds and grocery stores and other places where nannies and other household employees are likely… Read more »
In general, the Internal Revenue Service requires payroll tax filings by a domestic employer (household employer) who pays a housekeeper or other household employee more than $2,700 cash wages (2024) in a calendar year*. These payroll taxes are collectively referred to as “nanny taxes”, although as a practical matter these employment taxes are applied to… Read more »
