Archive for October, 2010

California Nanny Gate. What went wrong?

Thursday, October 14th, 2010

Here in California we’ve had another “Nanny Gate” occur that could affect the governor’s race. I’d like to share a few of my thoughts on the subject. Having owned a prominent Los Angeles nanny agency for many years that only placed “legal” nannies I can say that most families didn’t care about this issue, any more than they cared about paying their nannies “on the books”. Families are interested in whether the person will be good for their children.

In the Meg Whitman case the family hired their housekeeper through a well known nanny agency in the Bay Area, Town & Country Resources. From what I’ve read the nanny agency did their job and got the documentation they needed from the housekeeper and no doubt gave the paperwork to the Whitman family.

What went wrong? The law is clear that employers and nanny agencies don’t have to verify the paperwork submitted to them. Thankfully they don’t have to decide if a Social Security card or Green Card is legitimate. Now E-verify is readily available to verify documents, but I don’t believe it was as well established when the housekeeper was hired as it is now.

My sympathies were with the family until they received the notice from the Social Security Administration saying the SSN didn’t match their employee’s name. That was the red flag. The family didn’t follow up on that and continued to keep the housekeeper employed without asking any questions.

If it were me, I would have investigated this issue further and since they considered the housekeeper a “member of the family” I would have done what we do for family—gotten right to work to help her get documentation. The nanny that works for my family for over 13 years now had a work permit that was renewed yearly. Eventually it would no longer be renewed and she would be “illegal”. We contacted an immigration attorney and through a long, arduous process that made it all the way to the Federal 9th Circuit of Appeals. She eventually obtained her Green Card and her life has been changed forever—as has our family’s.

Nanny Taxes? What’s that about?

Wednesday, October 13th, 2010

Dr. Lindsay Heller, The Nanny Doctor

A household employer is defined as anyone who pays an individual to perform duties in or around their home. Once you have hired a nanny and agreed on a nanny salary it is important to realize that you are now an employer and, as a result, have duties and responsibilities to your employee. A household employer should expect to pay approximately 9-11% of their employee’s gross wages in payroll tax. These taxes include State Unemployment Insurance, Federal Unemployment Insurance; the employer’s half of Social Security and Medicare, and other taxes that vary by state. Additionally, employers are required to withhold taxes from their employee’s paycheck including State and Federal Income Tax, the employee’s half of Social Security & Medicare and other taxes that vary by state.

Because the logistics of employee payroll can be complicated, I recommend using a household payroll service. Breedlove and Associates, www.breedlove-online.com and GTM Payroll Services, www.gtm.com  both offer an easy-to-use service for nanny employers and are well regarded in the industry. Each service  can educate you on your employer responsibilities and handle your nanny payroll for a small monthly fee. These services are also knowledgeable about tax breaks available to employers and will assist you in finding the most affordable solution for your family!

We also highly recommend a nanny background check at the time of nanny hiring.