Senate Bill No. 804 – VIRGINIA - Minimum Wage for Au Pairs

[Anonymous]

Anonymous wrote:I don't understand what this means. We use 15/20 hours a week. Would we just pay for the hours we use? Would we no longer pay for cell phone/gym/etc or anything?

If this is passed, you would need to track all hours worked by your au pair each week on a timesheet in 5 minute increments and then pay them the state minimum wage and overtime if applicable, which is currently $7.50 an hour, but there are pending laws that would raise it up to $10 an hour immediately and $15 an hour over time. You might be able to deduct room and board at a very low rate (say $70 a week) from their salary, but this would mean that the au pair program would become very un-affordable for anyone who uses more than 15 hours or so a week. We use about 15-20 hours a week as well, so this wouldn't cost us much more, but I hate the idea of tracking time with my au pair clocking in and out each day.

[Anonymous]

Anonymous wrote:APs are deluded if they think it really gets them more. The state and federal gov't will be taking considerably more in taxes, which would have to be deducted from the weekly paycheck, so no more dodging income taxes by simply not filing.

Also, there's a significant conflict of interest in the groups promoting this and including APs. The nannies, housekeepers, etc. want to kill the AP program in the hopes that their services become more in demand because they've gotten rid of lower cost options for families.

you need to buy yourself a calculator.

Currently if an Aupair works 45hrs a week she makes $4.44/hr. That same AuPair, after mimimum wage gets increased in VA to $10/hr will be making $500/wk (she now gets overtime). Taxes are no different, she still will not have to pay into FICA, as this is a federal issue. her tax rate will go up very marginally. They pay taxes now.

You think someone grossing $200 today, but then grossing 500 in July will somehow make the same amount of money? She will go from the 10% bracket to the 12% bracket. In Massachusetts, employers can deduct up to $77/wk for room and board. AuPairs still come out on top. However you are correct. If I needed childcare for 45hrs a week, plus the agency fee, I would not mess with the drama and hassle of an AuPair.

[Anonymous]

Anonymous wrote:

Anonymous wrote:APs are deluded if they think it really gets them more. The state and federal gov't will be taking considerably more in taxes, which would have to be deducted from the weekly paycheck, so no more dodging income taxes by simply not filing.

Also, there's a significant conflict of interest in the groups promoting this and including APs. The nannies, housekeepers, etc. want to kill the AP program in the hopes that their services become more in demand because they've gotten rid of lower cost options for families.

you need to buy yourself a calculator.

Currently if an Aupair works 45hrs a week she makes $4.44/hr. That same AuPair, after mimimum wage gets increased in VA to $10/hr will be making $500/wk (she now gets overtime). Taxes are no different, she still will not have to pay into FICA, as this is a federal issue. her tax rate will go up very marginally. They pay taxes now.

You think someone grossing $200 today, but then grossing 500 in July will somehow make the same amount of money? She will go from the 10% bracket to the 12% bracket. In Massachusetts, employers can deduct up to $77/wk for room and board. AuPairs still come out on top. However you are correct. If I needed childcare for 45hrs a week, plus the agency fee, I would not mess with the drama and hassle of an AuPair.

You need to figure out where the $195.75 comes from.

The State Dept already takes into account federal minimum wage: $7.25 x 45 = $326.25
$326.25 with a 40% deduction for room and board = $195.75

APs make full federal minimum wage, NOT $4.44/hour.

And many MA host families are using a payroll service because they do have to take into account state and federal taxes on a weekly basis.

[Anonymous]

I just emailed my rep and the other reps listed in this thread.

[Anonymous]

I find it funny people keep saying host families would be crazy not to provide a cellphone. ha! Last time I checked, a tracphone with 15 texts a month and pay by the minute exists. Why would I pay for unlimited anything for someone? That's funny.

And yeah, we are exiting stage left too. Living with someone else is not worth $500/week.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:APs are deluded if they think it really gets them more. The state and federal gov't will be taking considerably more in taxes, which would have to be deducted from the weekly paycheck, so no more dodging income taxes by simply not filing.

Also, there's a significant conflict of interest in the groups promoting this and including APs. The nannies, housekeepers, etc. want to kill the AP program in the hopes that their services become more in demand because they've gotten rid of lower cost options for families.

you need to buy yourself a calculator.

Currently if an Aupair works 45hrs a week she makes $4.44/hr. That same AuPair, after mimimum wage gets increased in VA to $10/hr will be making $500/wk (she now gets overtime). Taxes are no different, she still will not have to pay into FICA, as this is a federal issue. her tax rate will go up very marginally. They pay taxes now.

You think someone grossing $200 today, but then grossing 500 in July will somehow make the same amount of money? She will go from the 10% bracket to the 12% bracket. In Massachusetts, employers can deduct up to $77/wk for room and board. AuPairs still come out on top. However you are correct. If I needed childcare for 45hrs a week, plus the agency fee, I would not mess with the drama and hassle of an AuPair.

You need to figure out where the $195.75 comes from.

The State Dept already takes into account federal minimum wage: $7.25 x 45 = $326.25
$326.25 with a 40% deduction for room and board = $195.75

APs make full federal minimum wage, NOT $4.44/hour.

And many MA host families are using a payroll service because they do have to take into account state and federal taxes on a weekly basis.

Their w2 shows 195.75/wk. If they work 45hrs a week, their earnings are $4.35/hr. All agency fees are earned and reported by their sponsoring agency. This money is not "earned " nor is it reported as wages.

Additionally in MA is it not mandatory that families withhold. It is nice to do, but not a requirement. If families choose to use a payroll service for this task, that is their choice.

[Anonymous]

Anonymous wrote:I find it funny people keep saying host families would be crazy not to provide a cellphone. ha! Last time I checked, a tracphone with 15 texts a month and pay by the minute exists. Why would I pay for unlimited anything for someone? That's funny.

And yeah, we are exiting stage left too. Living with someone else is not worth $500/week.

Ok, so great. Pay for a track phone. The program does not force you to provide an iPhone 10. Many families dont supply data.

I personally am not comfortable with my AuPair driving around with my children without navigation. Good for you tho? Money must be tight.

I think the good that comes out of this is it weeds out families who need full time childcare and just chose an AuPair to save a few bucks. Those families can plop their kids in a daycare center, the cheapest they can find. Now the only families that will remain are those who need shorter hours for older children, which I think really should be the spirit of the program.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:APs are deluded if they think it really gets them more. The state and federal gov't will be taking considerably more in taxes, which would have to be deducted from the weekly paycheck, so no more dodging income taxes by simply not filing.

Also, there's a significant conflict of interest in the groups promoting this and including APs. The nannies, housekeepers, etc. want to kill the AP program in the hopes that their services become more in demand because they've gotten rid of lower cost options for families.

you need to buy yourself a calculator.

Currently if an Aupair works 45hrs a week she makes $4.44/hr. That same AuPair, after mimimum wage gets increased in VA to $10/hr will be making $500/wk (she now gets overtime). Taxes are no different, she still will not have to pay into FICA, as this is a federal issue. her tax rate will go up very marginally. They pay taxes now.

You think someone grossing $200 today, but then grossing 500 in July will somehow make the same amount of money? She will go from the 10% bracket to the 12% bracket. In Massachusetts, employers can deduct up to $77/wk for room and board. AuPairs still come out on top. However you are correct. If I needed childcare for 45hrs a week, plus the agency fee, I would not mess with the drama and hassle of an AuPair.

You need to figure out where the $195.75 comes from.

The State Dept already takes into account federal minimum wage: $7.25 x 45 = $326.25
$326.25 with a 40% deduction for room and board = $195.75

APs make full federal minimum wage, NOT $4.44/hour.

And many MA host families are using a payroll service because they do have to take into account state and federal taxes on a weekly basis.

Their w2 shows 195.75/wk. If they work 45hrs a week, their earnings are $4.35/hr. All agency fees are earned and reported by their sponsoring agency. This money is not "earned " nor is it reported as wages.

Additionally in MA is it not mandatory that families withhold. It is nice to do, but not a requirement. If families choose to use a payroll service for this task, that is their choice.

What w2?

[Anonymous]

Actually, those are the families who will leave first. There are so many options for after school care and for hourly after school sitters that it doesn't make sense to pay room/board for someone in addition to everything else. I will let others who may know more about MA chime in, but from what I can tell from hearing from host parents in MA, it's the ones with infants where the program is still cost effective. For 20 hours of childcare a week, it wouldn't be worth the overhead of paperwork and agency fees.

I won't pretend to be an expert on the policies or anything. I know we have school age kids and would just go back to camp and after school programs. I'm not cheap or trying to find cheap care since it actually costs more now to host an aupair than it did to have my children in an extended day program. I liked them being home after school. It's why we would leave when the aupair program becomes more than 3 times as expensive as our extended day option at school. Right now, we can justify it by the luxury of it all. At some point, it become ridiculous.

And yeah, our van has in-dash navigation so not sure the smart phone/dumb phone argument is exactly the same for us. I hardly use the phone navigation. I think most of those perks would disappear for most families.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:APs are deluded if they think it really gets them more. The state and federal gov't will be taking considerably more in taxes, which would have to be deducted from the weekly paycheck, so no more dodging income taxes by simply not filing.

Also, there's a significant conflict of interest in the groups promoting this and including APs. The nannies, housekeepers, etc. want to kill the AP program in the hopes that their services become more in demand because they've gotten rid of lower cost options for families.

you need to buy yourself a calculator.

Currently if an Aupair works 45hrs a week she makes $4.44/hr. That same AuPair, after mimimum wage gets increased in VA to $10/hr will be making $500/wk (she now gets overtime). Taxes are no different, she still will not have to pay into FICA, as this is a federal issue. her tax rate will go up very marginally. They pay taxes now.

You think someone grossing $200 today, but then grossing 500 in July will somehow make the same amount of money? She will go from the 10% bracket to the 12% bracket. In Massachusetts, employers can deduct up to $77/wk for room and board. AuPairs still come out on top. However you are correct. If I needed childcare for 45hrs a week, plus the agency fee, I would not mess with the drama and hassle of an AuPair.

You need to figure out where the $195.75 comes from.

The State Dept already takes into account federal minimum wage: $7.25 x 45 = $326.25
$326.25 with a 40% deduction for room and board = $195.75

APs make full federal minimum wage, NOT $4.44/hour.

And many MA host families are using a payroll service because they do have to take into account state and federal taxes on a weekly basis.

Their w2 shows 195.75/wk. If they work 45hrs a week, their earnings are $4.35/hr. All agency fees are earned and reported by their sponsoring agency. This money is not "earned " nor is it reported as wages.

Additionally in MA is it not mandatory that families withhold. It is nice to do, but not a requirement. If families choose to use a payroll service for this task, that is their choice.

What w2?

NP, but when they report in wages. Another poster is claiming 45hr a week APs make minimum wage as it is, which is simply not true. If it were that would be reported as income.

[Anonymous]

This really won't impact our family. As it is we only use approx 20hrs a week. Our AP is basically for driving the kids to practice/appointments/the occasional drs appt and helping with homework. Would still be the same net to us, even at 10/hr.

I don't need aftercare, I need a driver! She is sometimes the 3rd driver with all of us in different directions in the afternoon. For instance today, our AP is taking our one son to physical therapy (surgery recovery) at 4pm and has to scramble home to get our other son to basketball practice by 530PM. She will then pick the basketball kid up at 7pm while I'm finishing dinner. DH will probably be on calls until 7nor so as his company is based in the Bay area. Her hours today are very typical 3:45-7:15. Not a chance in hell I can find a person to work those kind of hours on a sporadic basis, including some weekends when we have activities that clash.

[Anonymous]

I am a widow and I have an AP extraordinaire. She works 44 hours a week with evenings and weekends free. It costs roughly 40k for her stipend, educational credit, agency fees, cell, car insurance, gym, vacations, etc. I needed some one on one with toddler with physical delays. It has been a good fit for us, particularly given that speaks to DS only in a target minority language not widely represented in the nanny pool. AP has been to several states and countries with us either working or on vacation. I spend a lot of time and effort trying to give her a fantastic year. The AP program is
more expensive than a nanny share, more expensive than daycare, but cheaper than a nanny. I think the AP program was designed precisely to accommodate families like ours that really want to integrate APs into their hearts and homes, but also need childcare in a way that is hard to fit into traditional models.

[Anonymous]

Anonymous wrote:Actually, those are the families who will leave first. There are so many options for after school care and for hourly after school sitters that it doesn't make sense to pay room/board for someone in addition to everything else. I will let others who may know more about MA chime in, but from what I can tell from hearing from host parents in MA, it's the ones with infants where the program is still cost effective. For 20 hours of childcare a week, it wouldn't be worth the overhead of paperwork and agency fees.

I won't pretend to be an expert on the policies or anything. I know we have school age kids and would just go back to camp and after school programs. I'm not cheap or trying to find cheap care since it actually costs more now to host an aupair than it did to have my children in an extended day program. I liked them being home after school. It's why we would leave when the aupair program becomes more than 3 times as expensive as our extended day option at school. Right now, we can justify it by the luxury of it all. At some point, it become ridiculous.

And yeah, our van has in-dash navigation so not sure the smart phone/dumb phone argument is exactly the same for us. I hardly use the phone navigation. I think most of those perks would disappear for most families.

I don't understand what you are saying. for those of us who use under 20hrs a week of childcare, why would be leave? There is no added expense...

If I needed aftercare, I would use that, but we need a driver, this is the reality of having older children. I don't need someone to watch them, I need a driver. I don't skip aftercare "because it is nice for the kids to come home after school" My oldest is in 8th grade, there is no aftercare for him anyway. Even in summer my kids do camp, but I don't want to be the one driving them-I have a career, as does DH that requires that we give 9hrs a day to our employer, shuttling kids to frineds houses in the summer and picking them up from a camp that ends at 1PM is not compatible with our careers. Many of the camps they do are just 5 hours or so.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What does the bill say about deducing room and board and other expenses? (This still wouldn’t account for the $8500 agency fee)

It says it can be included as wages. In MA only $77/week is allowed to be deducted. Their childcare costs tripled overnight if you need the full 45 hours. Over 45 is overtime. There is a lot of confusion about whether or not they have to file/pay taxes as an employer.

Where/how is the $77 calculated?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What does the bill say about deducing room and board and other expenses? (This still wouldn’t account for the $8500 agency fee)

It says it can be included as wages. In MA only $77/week is allowed to be deducted. Their childcare costs tripled overnight if you need the full 45 hours. Over 45 is overtime. There is a lot of confusion about whether or not they have to file/pay taxes as an employer.

Where/how is the $77 calculated?

Its some figure beaurecrats pull out of their asses.