In reality, there is no such thing as a ‘nanny tax’. There are no unique taxes that apply only to nannies. However, the term nanny tax does refer to some real taxes that employers of nannies do need to pay, just like employers of other types of workers are responsible for paying their share of employment taxes. For a detailed breakdown you can look at IRS Publication 926 as it is the Household Employer’s Tax Guide.
The term nanny tax originated because of well-known nanny employers who had not paid in the appropriate taxes. The employment tax rules are a bit different for household employees (which is the classification that a nanny fits into), than they are for other employees, so it can be confusing.
The first item that you need to consider when deciding whether or not you may owe ‘nanny tax’ is how much money you paid for in-home daycare during the year. For 2011, $1,700.00 is the magic number. If you paid more than this amount for in-home daycare during the year, then you are required to report and pay employment taxes on the wages paid to that in-home provider.
There are exceptions to this rule, of course. Most family members: spouse, parents, or a child under twenty-one would be exempt. Also, anyone under 18 years old, who is not working as a nanny as their primary occupation, such as a high school student, would be excluded.
And what are these ‘nanny taxes’? They are the same taxes all employers must pay into the U.S. government. FICA is the main one. This is made up of two parts, social security taxes and medicare taxes. Together, they total 7.65% of the nanny’s wages, which you, as the employer, are responsible for paying. The other federal tax is referred to as FUTA. It is the Federal Unemployment Tax. This tax is paid on only the first $7,000.00 in wages paid during the year and is calculated at .08%. State unemployment taxes may apply, also. Each employer should check on the filing requirements within their own state for these rates and limts.
In addition to these ’employer taxes’, the nanny will also be responsible for her share of the FICA taxes, which are at a reduced rate for 2011, but will be a matching 7.65% in 2012. She is also responsible for her own income tax payments, unless you have agreed to withhold these and deposit the payments for her.
For the normal homeowner, all of this can be quite confusing. Working with a nanny agency can be helpful, as they are quite familiar with the process and your options. Consulting with your tax profession prior to hiring your first nanny is also recommended. To take the burden totally off your shoulders, there are several payroll services available that will handle your nanny’s payroll for you and make sure that you are in full compliance. There is also payroll software, such as Nanny Pay that help you with the process.
Posted in Nanny Taxes | 5 Comments
To make a difference in the life of a young person is as much a gift as it is a vocation. Nannies make that difference everyday in someone’s life. Sometimes the difference a nanny makes is even farther-reaching than she – or we – may have guessed. Here are ten nannies who helped shape history:
“So it was that when the man some called the ‘Greatest Man of the Age,’ lay dying in 1965 at the age of ninety, there was but one picture that stood at his bedside. It was the picture of his beloved nanny, gone to be with her Lord some seventy years before. She had understood him, she had prayed him to his best, and she had fueled the faith that fed the destiny of nations … in the hiddenness of her calling. ”
Posted in Uncategorized | 4 Comments
New parents have lots of decisions to make for their baby. One of those decisions is whether to use cloth or disposable diapers (this impacts themselves AND their nanny if they hire one). Until disposable diapers were invented and made affordable, cloth was the only realistic choice (thanks Mom!). Since disposable diapers are so convenient and easy to use, cloth diapers became almost extinct. However, both economic and environmental concerns have helped cloth diapers make a comeback. So let’s quickly explore the advantages and disadvantages of using cloth diapers.
One of the first considerations when deciding between cloth or disposable diapers is the cost. If you sit down and figure out how much you’ll spend on disposables for two years, cloth diapers are usually far less expensive. The initial cost of the diapers themselves is more, but just do the math… Even if you include the cost of washing them, cloth diapers are going to save you money in the long run.
The next issue to consider is the huge environmental impact of disposable diapers. With literally tons of used diapers filled with human waste clogging up landfills, cloth diapers are clearly far better for the environment. Besides that, the main fabric used in diapers is cotton, which is a renewable resource. A new crop of cotton can be planted every year, while the paper and plastic in disposables comes from trees and petroleum products. Even though trees are also a renewable resource, they obviously take longer than cotton to grow.
Another advantage of cloth diapers is that they are reusable. Soiled diapers get rinsed and washed so they can be used over and over again until the child is potty trained. They can even be passed on from one child to the next or given to friends or family who are starting a new family (some people find that to be gross, but they ARE clean after all).
One disadvantage of the old-fashioned cloth diapers is that they require using pins and plastic pants. However, for parents who want to spend a little more money, there are new designs of cloth diapers that fasten with snaps or Velcro. The waterproof fabric on the outside is colorful and stylish, with removable liners that can be washed separately.
Of course the biggest disadvantage of cloth diapers is dealing with the mess. The poop needs to be flushed down the toilet and the diapers need to be rinsed, which can be difficult for squeamish parents. Then there’s the added chore associated with extra loads of laundry. This consumes more time and energy for the caregivers. However, as you might have guessed some entrepreneurs saw this as an opportunity and will provide you with a cloth diaper service taking the yuck with them on their truck (of course, that all but eliminates the cost advantage of cloth diapers).
Another disadvantage of cloth diapers is the problem of leaks. Depending on the type of diapers used and how often they are changed, leaking can be a concern. Frequently changing the baby’s clothes also adds to the mountain of laundry that’s already piling up. Parents who use cloth diapers need to experiment with different sizes and liners to find the right solution for their baby.
The ultimate disadvantage of cloth diapers is that disposables are just so darn convenient, most people are willing to forego the extra expense and environmental impact. Dealing with diapers is about the least pleasant part of having a baby and disposables certainly make it much easier. One thing conscientious parents who decide to use cloth diapers need to keep in mind is that they can always have some disposables on hand to use when needed. Most people who use cloth usually have disposables for traveling or to use overnight.
In the end, like most things it comes down to the parents taking a decision. The good news is that there is no right or wrong answer as long as you keep the baby clean, comfortable, and dry.
Posted in Newborn Nanny Care | 6 Comments
This news item may surprise a few of you, but it has come to our attention that nannies, even SuperNannies, are human. Yes, that’s right, your very own Mary Poppins is actually flesh-and-bone just like you. As such, she is prone to many of the vicissitudes of life that other humanoids are subject to. Your nanny may even, heaven forbid, fall victim to a disease or injury that may sideline him or her for a longer period of time. In addition, nannies have families too, and there may be times when her family will need her even more than you do (as impossible as that may seem). What, then, do parents do for interim childcare? Below you will find a few of the options that will help you fill the gap. One of these may work for you or you may even end up utilizing more than one of these resources, especially if your nanny will be out for a lengthy period of time.
We hope that you don’t have too many needs to replace your nanny on a temporary or even permanent basis. We do believe that consistency with caregivers is important for early childhood development. With that said, life happens and you need to be prepared to handle just about any situation always making sure that the safety of your children comes first. Apply great scrutiny and don’t be afraid to just take time off from work yourself if you have to in order to temporarily fill in for your nanny.
Posted in hiring a nanny, Nanny Safety | 5 Comments
SuperNanny and its primary competitor, Nanny 911, are a pair of shows that television networks promote as “reality” programming. In both of these shows the set-up is basically the same, in that upper-middle-class families who have multiple children, who are not angels, need to call in expert help to save the families from imploding. The expert help is the super nanny, a regular Mary Poppins on steroids. The nannies come to the rescue of befuddled parents and caregivers, and they turn all the little imps (sorry… it’s true) into model children using little more than Dr. Phil types of advice. The nannies do everything so much better than anyone else can, and they make it look super easy. Reaction among nannies in the real world that you and I inhabit has been mixed, but tends toward not loving it and here are some of the reasons why:
If “reality” programming is something you find entertaining (I have to admit I usually do…), then by all means watch it. Just don’t be fooled into thinking it’s 100% real. The biggest advantage of SuperNanny is the understanding that help is available if and when you need it and that you can and should feel comfortable turning to a professional nanny for assistance with your family (just don’t expect them to show up wearing a cape and trying to immediately save the day).
Posted in hiring a nanny, Nanny Discipline | 7 Comments
Sometimes I stop and reflect on my childhood which is mostly full of very fond memories of growing up in the 70’s and 80’s. We had an amazing family which spent a ton of time together playing outside, going on picnics, and all kinds of other fun activities. Of course, being a kid I would frequently make bad decisions that would result in me actually deserving to be punished (even though I completely disagreed back in the day). I was particularly fond of competing, fighting, and generally pestering my brother. Well needless to say my parents had to step in and correct both of us on multiple occasions and sometimes they did it using techniques that no doubt would be considered barbaric by today’s standards. However, as I go through this list I think it’s worth at least considering whether in some cases these truly are barbaric or possibly better and more effective ways to discipline children.
I’m not sure why this popped into my head but it has been an interesting trip down memory lane for me. Several of these techniques clearly belong in the past but I’m not so sure that a few of these techniques didn’t make me a better and stronger person in the end. There does seem to be a general lack of discipline with a lot of kids nowadays and I’m sure there are multiple reasons why that is happening. One of which could be that we have abandoned the harsher forms of discipline, but that’s the question of the day; were they barbaric or better?
Posted in Nanny Discipline, Uncategorized | 8 Comments
When considering qualifications you should require of your nanny, CPR training should be one of them. CPR training for infants and children, in particular, would be preferred. Hopefully, your nanny will never have a need to make use of that training, but in the event that it is needed, you will be glad you required that certification.
Just as your nanny should be certified in CPR, parents should be also. Any situation that your nanny might encounter, you could encounter as well. Require it of your nanny, and make sure you require it of yourself as well.
Posted in hiring a nanny, Nanny Safety | 7 CommentsIn California there’s been quite a bit of talk and some hysteria over a proposed bill, The Domestic Workers Bill of Rights or California 889. The bill essentially requires domestic workers to be paid minimum wage and time and one-half based on the same rules as other workers. It also requires employers to give their employee a paycheck stub that reports hours worked, pay, and deductions.
The provision that’s causing some hysteria and panic amongst families is the provision that requires the employer to give the nanny a 10 minute break every 4 hours and a 30 minute break every 5 hours. People are saying they’ll have to hire two nannies to cover the time off. Does that really make sense? Don’t nannies get breaks now when the child is napping or watching TV? How is this different from a mom talking on the phone and keeping an eye on her child at the same time? Or, mom grabbing lunch while keeping an eye on their child. Surely, the law doesn’t intend a break where the nanny leaves the child alone. Personally, I think this reaction has to do more with people claiming “nanny state” than reality.
The part of the bill that will cause some pain will impact mainly seniors that have caregivers and senior care agencies. This is because of the rules requiring live-in caregivers to have 8 hours off to sleep in a 24 hour shift and rules regarding pay. This could be painful to seniors since it could drive up the cost of caregivers.
From what I’ve heard a similar-sounding law in NY state has had little impact on how nanny employers and employees work. For those interested here’s a link to an interview our nanny Claudia and I gave to NBC Los Angeles.
Posted in hiring a nanny, Nanny Taxes | Tagged nannies, Nanny Salary, nanny tax, nanny taxes, Nanny work | 6 CommentsIn the many years I’ve been in the nanny business I’ve heard so many times from families that didn’t use a nanny agency say they’ve done a nanny background check as if that means they’ve screened the nanny. I’ve felt they feel like they’ve done what was really necessary to vet their new hire. My guess is that what underlies this is the anxiety of hiring a nanny that they’re bringing into their home to care for their children without really knowing how to screen a nanny.
I’m not sure why some families don’t do everything necessary to assure themselves that they’ve really checked their new nanny out. Recently a nanny told me that she actually hands out nanny hiring materials to families that are interested in her from online nanny sites. My guess is that harried, busy families simply don’t have the time and knowledge to really screen a nanny fully, so they hang their hat on a nanny background check and call it a day.
Here’s what nanny background checks can do. They can match up the name with the SSN, they can do a nationwide background check, and they can do county criminal checks and provide you with a driving report. All together these checks are as good as it gets in an imperfect world to avoid hiring a nanny with a criminal record or DUI.
Here’s what nanny background checks can’t do. They can’t help prevent you from hiring a complete irresponsible jerk! They won’t help you hire a loving, caring engaged person to take care of your children. They can’t even prevent you from hiring someone who’s stolen from other families, but hasn’t been caught yet.
Posted in Uncategorized | 5 CommentsThere’s been a lot of press given to the nanny in England being paid $200,000 a year by a Russian billionaire that came from an article in the Wall Street Journal a few days ago. Sure it’s interesting that a nanny job can pay that kind of money, but all of us that have been in the nanny agency business know that the nanny is no doubt underpaid–and nanny agency, watch out for the replacement! What caught my eye at the bottom of the article was the quote from a British Manny about the neglect that takes place commonly in this economic stratosphere. I remember too clearly some of the ultra-wealthy and celebrity clients my agency had and how they so often never spent time with their children, but bought them everything imaginable. I think that frequently these kids are looked at as spoiled and indulged, which they may be, but more importantly they’re emotionally bereft of their parent’s attention and suffer terribly. Many will spend their lives trying to find their place in the world. Nannies frequently feel so much for their charges in these circumstances that they’re reluctant to leave the job because they know they’re the child’s lifeline. What a predicament for the nanny! In some way these emotionally deprived children are at the opposite end of the spectrum of the “helicopter parent.” I don’t like helicopter parenting for many reasons, but if you had to choose it’s better for the children than absent, neglectful parenting.
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