Reply to nanny taxes - how much more on top of pay to account for this?

Forum Index » General Discussion

Reply to "nanny taxes - how much more on top of pay to account for this?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]If you're looking for her take-home pay (after taxes) to be $8 per hour, you'll need to "gross up" her pay so that it's in the appropriate, reportable form (gross wages).  To do that, you need to know 1) how many hours she'll work (the tax rates for employees are based on total amount of her pay -- i.e at 5 hours per week the tax rate would be much lower than 40 hours per week), 2) what are her Form W-4 selections (i.e. Single or Married, # of allowances), 3) what state she lives in.  Those factors will determine her tax rate and therefore what the gross wages should be.

Once you know the gross wages, you can calculate the employer taxes.  Like the other poster said, they're about 10% of the gross wages.  However, there are childcare tax breaks that can offset most -- if not all -- of the employer taxes.  Our calculator at http://www.mybreedlove.com/Answers/EmployeePaycheck.aspx allows you to do the gross up calculations as well as the employer taxes and tax breaks all at once.

If you have more questions about the budget or any other aspect of hte employment process, feel free to call.  Household employer payroll, tax and HR is our business and we're happy to help.

Tom Breedlove
Breedlove & Associates [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics