Paying Nanny Over the Table
We are planning to hire a nanny, and it’s important to us to pay the appropriate taxes. However, I’m running into a lot of challenges in finding a nanny who is willing to be paid over the table. I understand for some the issue is about immigration status issues but it seems like for others it’s primarily an issue about take home pay, and the rest is just confusion on what it means for them because they have only ever been paid under the table. We’re willing to pay both the employee and employer portions of the tax (which I understand to be ~approx 15%).
I was trying to find a good resource online targeted at nannies about the nanny tax and being paid over the table (including the benefits to them in terms of access to social security, paid leave, unemployment and disability benefits but I’m only finding articles aimed at employers) - does anyone have a suggestion for where I might find a good explanation that I can share with potential nannies?
Parent Replies
Rather than try to convince prospective employees of the merits of being a legal employee (which protects both of you), I would make sure your advertisement/job posting clearly states that it is legal employment, and that way you screen out people who don't want to do that (for whatever reason). We had a household employee for childcare who we paid legally, so it is certainly possible to find someone. We also paid both shares of the tax; I think that is common. I would encourage you to stay the course because it provides so much more coverage in case they are hurt or injured in your employment, as well as the financial benefits you mention.
This is a great resource: https://domesticemployers.org/. Their mission is to improve wages and working conditions for domestic employees and I’ve found their info very helpful. Best wishes!
I do agree it can be hard, I think at times it is also an issue of health insurance (or that has been shared with me, being paid under table allows one to still potentially qualify for Medicaid programs for themselves and family while making $) so I’m wondering about possibly looking into healthcare programs as well and offering to offset that expense?
It’s a lot, a complicated issue for sure.
I can't help on finding the explanation to share, but our nanny (who we pay over the table) is looking for more work, as both of our kids will be in school this fall. She's fluent in Spanish but has limited English (her daughter or husband can help translate, if necessary). I speak limited Spanish and we've been doing well for over 5 years now. We love her to pieces but can't give her the hours she needs. If you'd like her info, please contact me via BPN.
You should contact Bananas www.bananasbunch.org. They might be able to help.