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I am not an employment attorney. I am willing to share my opinion however....
In a nanny share where the nanny works for both employers at the same time (this is a key point, definitions of nanny share abound!) so long as the nanny's total hourly compensation meets minimum wage and overtime rules, how this is divided among each employer is not important.
In a practical sense, I rarely see either family's contribution fall below minimum wage; however there are for instances. Two families with 3 children, one with 2 and the other with 3, may choose to pay a nanny $18/hour. The family with one child may pay $6/hour and the family with 2 $12. Total hourly compensation to the employee is $18.
Here are things I would suggest to protect everyone:
1. This has to be guaranteed compensation. Meaning the employee is paid by the two employers the total rate no matter if one family is missing one or more days.
2. Overtime has to be considered. If $18/hour is a blended rate for 45 hours for instance, you need to back it out to hourly and overtime. In this illustration the hourly wage being offered is $17.05. The overtime wage is $25.58. (our Hourly Rate Calculator will do the math https://www.4nannytaxes.com/calculator/hourly.cfm)
3. I strongly encourage a 3 way work agreement between all parties that spells this out. (A best practice anyway, but especially if you want to make the case for joint employment for FLSA compliance purposes.)
4. Recordkeeing is important - time and attendance, calculation of gross wages, calculation of deductions and documentation of net pay.
I hope this helps. I am unaware of any wage and hour complaints in a nanny share where the considerations above were documented and there was a ruling against one or both of the employers.
In a nanny share where the nanny works for both employers at the same time (this is a key point, definitions of nanny share abound!) so long as the nanny's total hourly compensation meets minimum wage and overtime rules, how this is divided among each employer is not important.
In a practical sense, I rarely see either family's contribution fall below minimum wage; however there are for instances. Two families with 3 children, one with 2 and the other with 3, may choose to pay a nanny $18/hour. The family with one child may pay $6/hour and the family with 2 $12. Total hourly compensation to the employee is $18.
Here are things I would suggest to protect everyone:
1. This has to be guaranteed compensation. Meaning the employee is paid by the two employers the total rate no matter if one family is missing one or more days.
2. Overtime has to be considered. If $18/hour is a blended rate for 45 hours for instance, you need to back it out to hourly and overtime. In this illustration the hourly wage being offered is $17.05. The overtime wage is $25.58. (our Hourly Rate Calculator will do the math https://www.4nannytaxes.com/calculator/hourly.cfm)
3. I strongly encourage a 3 way work agreement between all parties that spells this out. (A best practice anyway, but especially if you want to make the case for joint employment for FLSA compliance purposes.)
4. Recordkeeing is important - time and attendance, calculation of gross wages, calculation of deductions and documentation of net pay.
I hope this helps. I am unaware of any wage and hour complaints in a nanny share where the considerations above were documented and there was a ruling against one or both of the employers.
Anonymous wrote:Anonymous wrote:We're thinking of hiring a private nanny (for the first time). We understood that we'd be witholding for her social seciruty and medicaid amounts, but she told us that she prefers we don't withold anything, but will give us a statement each month when she sends funds to the IRS for taxes that way she can also claim driving miles on her taxes.
Does this make any sense? How do you pay for your nanny? Also, do you pay her weekly or bi-monthly?
It's not up to the nanny to tell you not to withhold SS and Medicaid, as these are employer responsibilities. You have an option of withholding or not withholding income taxes, as these are the nanny's liability. She can claim miles and other deductions on her taxes as employer-unreimbursed expenses, this has nothing to do with what you withhold.
Make absolutely certain that she is clear you will pay on the books.
This is absolutely correct OP.
OP you will need to give the employee a W-2 form because you project to pay wages in excess of $1900 in the year (15 * 200 = $3000)
And you must register for and obtain an unemployment account in DC and file and pay that tax.
Do call us if you have a question. We obviously sell services, but we don't mind chatting briefly if you are DIY.
And you must register for and obtain an unemployment account in DC and file and pay that tax.
Do call us if you have a question. We obviously sell services, but we don't mind chatting briefly if you are DIY.
You are welcome to download DC specific information here:
http://www.info.4nannytaxes.com/411-household-employment-facts-for-district-of-columbia
All official information is housed in the DC Department of Employer Services ... but you will need to hunt and peck as SUTA and workers' comp are two different divisions.
http://www.info.4nannytaxes.com/411-household-employment-facts-for-district-of-columbia
All official information is housed in the DC Department of Employer Services ... but you will need to hunt and peck as SUTA and workers' comp are two different divisions.
Anonymous wrote:Yes, most nannies earn reduced rates for hours in which the children are sleeping, provided that they are sleeping through the night. The most common formula in DC is to pay the nanny or sitter her regular rate during hours in which the children area awake and then to pay a flat stipend of $50-$100 for the hours when the children sleep. I have also had sitters request their regular rate for hours when the children are awake plus half the regular rate for hours when the children are sleeping.
There are alternatives. If the nanny is working at least 24 consecutive hours, federal labor law allows you to pay regular rates for 16 hours and then nothing for up to 8 hours of sleep time per 24 hour period, provided that the nanny is provided with reasonable sleep accommodations and can sleep for at least five of those hours.
If you are hiring someone to stay up throughout the night to monitor and feed a newborn, expect to pay a premium over and above the nanny's regular rate, with time and a half after 40 hours in a week. Also keep in mind that night nannies or newborn nurses who specialize in overnights typically earn more per hour than regular daytime nannies, largely because no one really loves staying awake all night. You may be able to pay regular nanny rates if the night-shift nanny has a bed and can sleep in between nighttime feedings.
+1 excellent explanation.
I will note that in MD and for all live out nannies OT kicks in after 40 hours.
FWIW these are PDFs of the Montgomery County documents that they published. No opinion or commentary. In my experience trying to keep links current to .gov websites is an exercise in futility, as they are constantly moving stuff around.
OP if a nanny is currently unemployed they are typically happy to work some paid trial days - they get as much of an opportunity as you to assess good job fit.
However, if you have a good candidate who is currently employed, your only option would be to have her try out on her days off, if that is even possible for her. Try to stay flexible on this situation, as it is perfectly reasonable that the employed nanny doesn't want to mess with the sure bet she has now for the opportunity to audition.
However, if you have a good candidate who is currently employed, your only option would be to have her try out on her days off, if that is even possible for her. Try to stay flexible on this situation, as it is perfectly reasonable that the employed nanny doesn't want to mess with the sure bet she has now for the opportunity to audition.
In 20+ years in the industry I don't know one that background screens the parents. Many will require a face to face with the parents at least once, and some will visit the work place (home) prior to referring candidates - especially for live in positions - to have 1st hand information, but there is no hard and fast rule.
An applicant should ask the agency what their specific policy is. And of course applicants should always keep their safety in mind, and when interviewing make sure someone else knows where they will be when, and then check back with the friend/family member when they leave the interview. This is particularly important if the applicant is using an online referral resource, but should apply across the board.
An applicant should ask the agency what their specific policy is. And of course applicants should always keep their safety in mind, and when interviewing make sure someone else knows where they will be when, and then check back with the friend/family member when they leave the interview. This is particularly important if the applicant is using an online referral resource, but should apply across the board.
You are legally required to pay nanny for all "on duty" time - time when she is not free to pursue her own pursuits without the children. You can legitimately exclude up to 8 hours of sleep time, providing that at least 5 hours of sleep is uninterrupted, and she has at least 8 available.
Sounds like she was working 13 hour days if I did the math right on your schedule, assuming that she was required to stay and sleep with the kids (there was no other responsible adult present in the room.)
Sounds like she was working 13 hour days if I did the math right on your schedule, assuming that she was required to stay and sleep with the kids (there was no other responsible adult present in the room.)
You can find the Montgomery County links here:
http://www.4nannytaxes.com/index.cfm/resources/forms/
http://www.4nannytaxes.com/index.cfm/resources/forms/
Anonymous wrote:Currently, (thankfully!) another family needed some emergency care for a few days this week so I have made some money in the lag time.
They want me to come back on to work for the next school year, but this "unplanned" leave has occurred before.
I agree with a prior poster who suggested sitting down and chatting with the family. They may not realize the position the unpaid leave puts you in and if you have a respectful conversation about it 1) you know that they know, 2) they have the opportunity to offer you something going forward and 3) you will know where you stand. I would do this, assuming you are otherwise happy with the position, before you just go look for another position. If you cannot come to a meeting of the minds, then by all means look for something else.
Guaranteed pay is a negotiated benefit, not a right. I have worked with many thousands of employers over more than 20 years and most are perfectly reasonable and in fact will compromise to retain a valued employee. What they are not is mind readers. Unless you have talked about this before, if you were my employee I would appreciate the opportunity to have the discussion and see if we can come to an agreement we can all live with.
It sounds very fair.
I would make a suggestion that might save you both $$. Instead of the $100 monthly premium support for her insurance policy you could increase it to say $275 month in lieu of a dollar on the hourly rate. Of course the policy would have to cost $275 or more for it to be tax free.
This saves you employment taxes on that $1 an hour (in a year that is roughly $200 - 225 from your pocket) PLUS nanny has $2000 less income to pay income taxes and her FICA taxes on (saves her probably $500+ a year) so it is a win-win.
Kathy Webb
HomeWork Solutions Inc.
800.626.4829
I would make a suggestion that might save you both $$. Instead of the $100 monthly premium support for her insurance policy you could increase it to say $275 month in lieu of a dollar on the hourly rate. Of course the policy would have to cost $275 or more for it to be tax free.
This saves you employment taxes on that $1 an hour (in a year that is roughly $200 - 225 from your pocket) PLUS nanny has $2000 less income to pay income taxes and her FICA taxes on (saves her probably $500+ a year) so it is a win-win.
Kathy Webb
HomeWork Solutions Inc.
800.626.4829
Anonymous wrote:Anonymous wrote:I had this issue previously come up with my nanny who said that she wants money for gas mileage. My issue with it is that when I hired her we talked about driving being an important part of her duties and as a result I pay her 20 an hour full time and my kids are in school in the morning. If I had know that she wanted gas/milage money on top of that I would have lowered her hourly rate. Thoughts?
You both failed to discuss this during the interview process which is why you had this issue come up. Honestly, anytime a nanny is using her car for work- you are supposed to be paying the IRS rate. Gas reimbursement has never been a part of my hourly rate. They should be separate. How did you resolve the issue with you nanny?
In my experience, nannies who are willing and able to use their own vehicle to transport your children come at a premium rate AND you still reimburse for mileage at the IRS standard rate, which is typically established in November for the coming year.
You otherwise would have to provide nanny with an auto to perform the kiddie shuttle, insure it, maintain it, and keep the gas tank full. Her slightly higher rate allows you to skip the cost of purchasing and insuring this second vehicle, and the mileage reimbursement compensates her for actual usage.
Many families all throw in a detailing once a year (or more frequently depending on the situation) to clean up the debris in her car caused by dripped bottles, french fries, muddy shoes, and all the extras your child donated to her car. As a mom of 3 I know this is completely unavoidable, and it is a nice gesture to offer to help the nanny maintain the look/feel of her vehicle, particularly the interior.
http://www.info.4nannytaxes.com/blog-0/bid/92846/2013-IRS-Mileage-Rate-Increase-Nanny-Mileage-Reimbursement
Kathy Webb
HomeWork Solutions Inc.
http://does.dc.gov/node/166392
Phone: (202) 671-1000
Kathy Webb
HomeWork Solutions Inc.
800.626.4829
Phone: (202) 671-1000
Kathy Webb
HomeWork Solutions Inc.
800.626.4829
I don't know enough particulars of your situation, but this is where you can start.
http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/mealslodgingliveinnanny/
We offer free telephone consultation - give us a call to chat.
Kathy Webb
HomeWork Solutions Inc.
703.404.8151
http://www.4nannytaxes.com/index.cfm/faq/nannyhousekeeper-faq-list/mealslodgingliveinnanny/
We offer free telephone consultation - give us a call to chat.
Kathy Webb
HomeWork Solutions Inc.
703.404.8151
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