Knowledge Center

Nanny Employers

• Caregiver or Nanny Pay Stubs: Are they required?

  Did you know that 39 states have now passed laws requiring employers to provide itemized pay stubs to their employees? Why all the attention to nanny pay stubs? There has been a slew of legislation at the state level in the last decade focused on “Wage Theft Prevention” – essentially employers either not paying for all hours... Read more »

• How are the nanny’s (employee’s) payroll taxes paid?

  Our Ultimate Guide to Nanny Payroll Taxes Requirements Whether your nanny works full-time, part-time or lives with your family, the odds are likely that in the eyes of federal and state governments, they are an employee of your household. That means that you, as the nanny's employer, need to make sure that you're following state,... Read more »

• Am I required to offer my nanny benefits such as vacation time, sick time, or paid time off?

  US employers are not required to offer benefits such as paid vacation time, paid sick time, medical or life insurance, or retirement savings plans unless stipulated by state or local laws. However, employers with full-time, permanent staff find that offering some basic level of benefits keeps them competitive in the employment market, attracting and retaining… Read more »

• How often do I need to pay or remit the “nanny taxes”?

  Many wonder how to pay nanny taxes and how often to file. Understand that the federal and state filing schedules are NOT synchronized. Additionally, not all states have the same reporting schedule. Federal Employment Taxes: Employers of domestic workers must, at a minimum, make annual payments for Social Security, Medicare and Withheld Income Tax (if… Read more »

• 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 Benefits

  More and more we’re getting nannies asking about how to get health insurance built into their compensation packages; we’re realizing many more employers asking how they can help with nanny health insurance benefits, too. That’s fantastic! Just knowing how to go about doing it is where things get confusing. Let's consider the question: what's a... 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 »