| Today, more and more families with nannies are | | | | the nanny salary for up to six months if the nanny |
| making the decision to pay their nanny the legal way. | | | | loses the job for no fault of her own. The nanny will |
| This means filing the appropriate paperwork to | | | | also be working towards Social Security and Medicare |
| properly pay and withhold taxes, making the nanny a | | | | benefits, something every hardworking employee |
| legal employee in the eyes of the law. While many | | | | should be entitled to. |
| families are attempting to help the nanny, they may be | | | | Additionally, the nanny will likely appreciate having a |
| surprised when they are met with some resistance by | | | | legitimate employment status and history when it |
| potential nanny employees. Many, especially those who | | | | comes to other aspects of life and finance. Taking out |
| have worked as a nanny in the past, may already | | | | a loan, applying for a credit card, filling for health |
| have years of experience working 'under the table,' as | | | | insurance, or applying for future jobs are all tasks |
| an illegally paid employee. The nanny may not fully | | | | greatly complicated or rendered impossible without |
| understand why the family is concerned about | | | | legal employment status. It is important from the very |
| complying with a tax law that is broken more often | | | | beginning to estimate the amount of taxes nanny |
| than not, and may worry this will mean big cuts in the | | | | candidates will be paying, and demonstrate how the |
| nanny salary each year. In order to make the situation | | | | family will be compensating for the loss in the salary |
| comfortable for everybody, it is important to | | | | earned. This way, nobody feels cheated, and the |
| understand the benefits for the nanny that can be | | | | nanny will not be incentivized to continue looking for an |
| gained by legal taxation. Start right from the first | | | | illegally paid job where the short term financial rewards |
| meetings as you interview nanny candidates, explaining | | | | are higher. |
| the benefits of paying the "Nanny Tax." | | | | Finally, it is important that any new nanny understand, |
| It is important for any new nanny to understand that | | | | right from the first interview nanny candidates have |
| under federal law, she is considered a "household | | | | with the family, that the issue of legality is important to |
| employee," and as such Social Security and Medicare | | | | the family. Any nanny worth hiring to care for your |
| should be withheld and paid should she be making | | | | children should make the wants and needs of the |
| more than the benchmark amount. Depending on the | | | | family a top priority. By respecting your wishes right |
| nanny salary, it may also be necessary for the | | | | from the beginning and complying with legal taxes |
| employer to pay federal unemployment taxes. Explain | | | | nanny household employees can prove ambition and |
| that these things benefit the nanny, since the nanny will | | | | loyalty. Besides the benefits for the nanny the top |
| be eligible for such benefits just like any other | | | | benefit is that everyone can breathe easy knowing |
| employee in the country. The nanny will have | | | | they have complied with the law. |
| unemployment insurance, thereby protecting part of | | | | |