When I hired my nanny, my understanding from her and her previous employer was that the employer paid ALL her taxes and her net is $15/hour. I have now learned that her previous employer did not actually pay her withholding tax. I am not totally sure the nanny understands this but I have since done the math (tax time!) and she is basically getting paid $21/hour which quite frankly I think is absurd. At this point however, I do not know what to do as we have been doing this for a year. I know in large part it is my screw up and I don't want to have to let her go and start over again but I really don't think we should be paying her side of the taxes if that was not being done for her before. Any suggestions on what to do?
Thanks! |
Tell her that, effective her next paycheck, that you will only be paying the taxes that required of you as a household employer and she will be responsible for the employee's share and any personal income tax withholding. Give her an itemization of her paycheck including all deductions. |
Well be prepared that she will leave!! |
Revolving door nannies. Poor children. It isn't fair to them. |
Well If your happy with her i would make a time to sit down and redo a contract. Its been a year and we want to renew but make some changes.
I would Give her a raise maybe 17 and let her know this is her gross pay now. Youll of course pay your share and I would pay up until now of all her taxes. |
You agreed to pay her taxes...fair or not it's what you agreed to. Is it worth losing her over? Because I would bet that she is not just going to agree to it...
|
So? The nanny is an adult and needs to pay her own taxes. I'm sure if she quits, there will be plenty of qualified applicants available who will, oh I don't know, actually be open to the idea of paying their part of the taxes. |
Nanny here... I get that and agree she should follow her end but sometimes contracts need renegotiated. This is a very personal business where people.learn the INS and outs as they go. Op I think you need to sit down and be honest with her. Let her know you didbt understand the faxes correctly and going forward need to pay her a gross rate. And Op is she giving you her tax Bill at the end of the year? I mean If your paying her taxes Shes not getting a tax return right? I have. Child but making 15 I get all my taxes back pretty much :/ |
So what are you doing op? |
Next time hire a professional and negotiate GROSS pay.
But yes, you should absolutely re-negotiate. She probably did not deserve a jump from 15 to 21 purely because she was under the table before. |
OP you should start again and be smarter this time. I can't believe that you fell for this.
$15 an hour is gross not net. For you to be paying her $21 gross, you must be paying not only her share of SSN and Med but her federal and state income tax. This is taxable income so you have to keep spiraling up which is ridiculous. She probably didn't give you any deductions since you footing her entire tax bill. She'll get a refund based on taxes that you paid and guess who gets to keep the refund. You are only legally obligated to withhold her SSN/Medicare taxes. You should simply do this for this year and NOT pay her fed/state income taxes. |
Op, you really should do se research. You are legally required to pay the Medicare/ social security taxes by taking half of it out of her paycheck and paying the other half. She is responsible for federal and state taxes. They don't have to be withheld from every check but the burden still lays on her. Stop paying her taxes!! |
|