2% payroll tax hurt us more especialy if you have a nanny, did you give nanny a raise?

[Anonymous]

No need to give her a raise. Did your employers give YOU one to compensate? If that was the only reason you were giving her a raise, you shouldn't have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To be fair we basically gave our nanny a 2% raise to cover the payroll tax.

We experienced a 2% decline in income.

This sucks and I am surprised no one else has pointed this out.

Did you give your nanny the raise or cut her take home?

No, you experienced an increase in income the past two years. It was temporary for the past two years and all they did was revert back to the old %. I can't believe how so many people think that it wasn't going to be temporary.

Not an unreasonable expectation given the frequency with which many "temporary" provisions are extended.

Moreover, in the two years previously, the Make Work Pay cut had been in effect so the overall impact of a reduced payroll tax was 4 years, not 2. That's a pretty long time and easy to become accustomed to.

Giving snotty answers like "you should have KNOWN it was only temporary" is both elitist, assumes financial literacy that most people lack, and ignores the way people really think and behave. Don't be such a policy wonk and understand how people really live their lives and manage their finances once in a while. You only sound smug when you do that. Maybe you intend to, but it's really unbecoming.

First of all, the OP was elitist when she complained about the 2% "increase" in taxes she had to pay to her domestic worker. Secondly, the things that are "temporary" that turn out not be are usually things that people wanted to be permanent in the first place and settled for temporary to get it passed. Then they work to extend extend extend. The 2% FICA tax holiday was never ever intended to be more than a temporary thing.

FTR, I don't have to look far to see people managing finances.

I didnt get that from the OP. I would also be frustrated if I had a 2% decrease in income and also increase the nanny's income 2%.

Not OP here. In addition to the 2% decrease in our paychecks (which I'm fine with), as nanny employers, our nanny costs went up as well because our share of the SS taxes went back up to the normal rate. Of course this hit at the same month the State Federal Unemployment Tax reset for the year. From December to January our monthly costs went up about $180.

[Anonymous]

15:28 - and no we didn't give her a raise to offset. Did you get a raise to offset it?

[Anonymous]

We did not give our nanny a raise but explained the change before she got her first paycheck of the year. She understood that it had been temporary so there was no disappointment. She'd rather have a solvent Social Security program.

[Anonymous]

...as nanny employers, our nanny costs went up as well because our share of the SS taxes went back up to the normal rate.

This is not right. There was no tax holiday on the employer portion of SS.

[Anonymous]

Anonymous wrote:

...as nanny employers, our nanny costs went up as well because our share of the SS taxes went back up to the normal rate.

This is not right. There was no tax holiday on the employer portion of SS.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:

...as nanny employers, our nanny costs went up as well because our share of the SS taxes went back up to the normal rate.

This is not right. There was no tax holiday on the employer portion of SS.

+1

You are correct. Don't know WTH I was thinking when I was typing that. And I looked at my nanny payroll statements from December and January mutiple times to calculate what the increase was. Sometimes I wonder WTF is going on in my brain these days.

[Anonymous]

We didn't give her a raise. I wish child care expenses were Pre-tax (well more than $4,000 which is a pittance). It is ridiculous that are effective rate is close to 50% and then we pay the nanny from that.

[Anonymous]

I think I live in the wrong part of the country.