1 nannyshare, two employers - legal set up & min wage issues

[Anonymous]

How do you pay legally with a Nannyshare? We want to do everything correctly. If we each are employers and pay separately, half of the payment is below minimum wage and the system won’t allow for that. How have other families handled this?

[Anonymous]

Each family pays the full rate for half the week.

[Anonymous]

Anonymous wrote:How do you pay legally with a Nannyshare? We want to do everything correctly. If we each are employers and pay separately, half of the payment is below minimum wage and the system won’t allow for that. How have other families handled this?

Do you actually think you can pay 1/2 of mnimum wage for a nanny share,?

[Anonymous]

Anonymous wrote:Each family pays the full rate for half the week.

Beware that if you do this that worker's compensation may not cover the period outside of your employment hours, even if the nanny is in your home during those hours.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you pay legally with a Nannyshare? We want to do everything correctly. If we each are employers and pay separately, half of the payment is below minimum wage and the system won’t allow for that. How have other families handled this?

Do you actually think you can pay 1/2 of mnimum wage for a nanny share,?

NP. You're missing the point. If minimum wage is $15, and you agree to pay a nanny $26 per hour, then each family is paying $13 per hour, which is less than minimum wage. This is perfectly legal, but since the concept of nanny shares is regional and not super common, lots of the basic nanny payroll services are not set up for them, and so they won't let you pay $13 per hour for your nanny. This was the case with our payroll service (we used Poppins Payroll). We got around this in the payroll system by paying $26 per hour 20 hours a week, rather than $13 per hour 40 hours a week.

This is just a limitation of the payroll system itself, it's not a legal issue. We have a contract that clearly states how much each family is paying per hour. We also told the worker's comp insurance company that we were in a share and were paying $13 per hour towards the nanny. I'm not a lawyer, but I'm a conscientious person who likes my i's dotted and my t's crossed, and I don't think there's any concern in using the payroll system this way.

[Anonymous]

OP, are you using a payroll service? They should be able to set it up no problem.

I am 100% positive that in a share each family does NOT have to pay minimum wage. It is considered a joint employer situation and the total pay has to equal minimum wage for each hour plust OT over 40 hours if applicable (obviously the market is way over min wage).

Source: I sat on the phone for many hours with the IRS to get this question answered.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How do you pay legally with a Nannyshare? We want to do everything correctly. If we each are employers and pay separately, half of the payment is below minimum wage and the system won’t allow for that. How have other families handled this?

Do you actually think you can pay 1/2 of mnimum wage for a nanny share,?

No one is paying half of minimum wage. Jeez. Half the rate comes out less than minimum wage for each family, but the total is well over minimum wage.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you pay legally with a Nannyshare? We want to do everything correctly. If we each are employers and pay separately, half of the payment is below minimum wage and the system won’t allow for that. How have other families handled this?

Do you actually think you can pay 1/2 of mnimum wage for a nanny share,?

No one is paying half of minimum wage. Jeez. Half the rate comes out less than minimum wage for each family, but the total is well over minimum wage.

I think that for lots of nannies, half the rate is still above minimum wage these days. In my area, you cannot hire an experienced nanny for two babies for <$30/hr anyway. That is what PP is (maybe) trying to say. But, if OP is asking the question, she must have someone willing to accept a lower rate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How do you pay legally with a Nannyshare? We want to do everything correctly. If we each are employers and pay separately, half of the payment is below minimum wage and the system won’t allow for that. How have other families handled this?

Do you actually think you can pay 1/2 of mnimum wage for a nanny share,?

No one is paying half of minimum wage. Jeez. Half the rate comes out less than minimum wage for each family, but the total is well over minimum wage.

I think that for lots of nannies, half the rate is still above minimum wage these days. In my area, you cannot hire an experienced nanny for two babies for <$30/hr anyway. That is what PP is (maybe) trying to say. But, if OP is asking the question, she must have someone willing to accept a lower rate.

Most shares in the DMV area are $28-32hr