Chipping in for nanny's health insurance - what makes sense?

[Anonymous]

We are going to start giving our nanny a small amount per month to help with health insurance ($100 or so.) we pay her legally/withhold currently. How should we pay her this extra &100/month, with respect to tax implications. Does cash make the most sense? Or is there some way in which we could deduct it for our tax purposes? Thanks.

[Anonymous]

We do this exact thing. We write a check every month, on which we indicate that it is for health insurance costs. She documents ongoing health insurance coverage for us. This way allows us to give her the money without tax implications but you do need assurance that she has the coverage.

You cannot deduct it, but you do not have to pay taxes on this kind of benefit like you would on salary. But you do need the paper trail to document that she is, in fact, insured.

[Anonymous]

Got it - thanks, PP! Can you refer me to where you can read about the fact that you need documentation of coverage or what provision/law requires this? Just curious. Thanks again!

[Anonymous]

Just do some googling. Any of the companies that handle tax payments (breedlove, 4 nanny taxes, etc...) can/do offer guidance either in online FAQ or by phone.

Also, I think it might actually be tax deductible for you - but don't take my word for it.

[Anonymous]

please don't get your information from misinformed posters on here. Check out

http://www.breedlove.com/Answers/Nanny-Health-Insurance.aspx

[Anonymous]

pay fairly, want a happy nanny? dont be cheap skates