Are the compensation rates mentioned here before or after taxes?

[Anonymous]

We are looking to hire a nanny for a 2-baby nanny share in Arlington and trying to get an accurate idea of compensation. I see lots of mentions of hourly rates on this forum, but I am unclear if these rates are the pre- or post-tax rate. For instance, if we are considering hiring a nanny for $20/hour for 40 hours/week, is this nanny expecting $800/week in take-home pay? If this is the case, we would be paying approximately $1,120/week, based on these tax withholdings:

Gross pay $1,120.00
Federal income tax $170.50
Social Security $69.44
Medicare $16.24
Virginia $56.13
Net pay (take home) $807.69

Or is she expecting a take-home paycheck of around $607/week, based on the following tax withholdings?

Gross pay $800.00
Federal income tax $93.39
Social Security $49.60
Medicare $11.60
Virginia $37.73
Net pay (take home) $607.68

I also understand that as employers, we are not required to withhold the income tax portion, but that many employers do so as an accommodation to their employee. So, maybe the nanny is only expecting us to withhold social security and medicare, in which case our weekly out-of-pocket would be somewhere in between.

Obviously, no matter the arrangement we will make sure the agreement is explicit and well understood by all parties, but I wanted to get a sense of what is generally meant on this forum by $20/hour.

Thanks for the help!

[Anonymous]

It will definitely vary by nanny (an unfortunate side to this industry having no regulation).

Personally, I have always stated and had my gross rate in my working agreements. My employers have also always withheld income tax in addition to social security and medicare as an accommodation for me. Whichever way you chose to go just make sure its clearly stated in your working agreement!

Good luck!

[Anonymous]

Just like with "real" jobs, when people talk money unless they specify "net" or "take-home" they are talking gross.

[Anonymous]

I don't know what she means, but I always include the amount I'm willing to pay in my ads, and I mean gross. I go over it at the interview when I talk about pay and benefits.

You can assume that if she means net, she will be taking the fewest possible deductions (assume "0") so that you pay a greater amount in fed and state tax that she can then recoup as a refund at tax time. Don't do it.

[Anonymous]

The rates here are meant to represent gross but many inexperienced (or foreign?) nannies don't understand what their take home will be so be very clear that you are talking about a gross wage and it will have taxes deducted from it.

[Anonymous]

Rates are always gross. Anyone who thinks differently doesn't have the experience or legality that you are looking for.

[Anonymous]

Give the rates as a gross amount.

[Anonymous]

The rates should always be gross wages. You cannot have knowledge of anyone's individual tax status so you can only work from a gross wage standpoint.

If a nanny wants you to do anything different I would not hire that nanny.

Good luck.