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Reply to "Social Security? Do families cover nanny's portion?"
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[quote=Anonymous]We don't pay our nanny's portion of the tax (we do pay our own, of course). The payroll company we work with advised us that it was unusual for employers to pay the nanny's portion of the tax as well (and also sort of complicated because then the portion you pay becomes additional taxable income for the nanny or something like that). Are you sure the nannies you are interviewing are not actually saying that the employer should be deducting the tax? We interviewed a couple who kept telling us their previous employers "paid all their taxes for them" but it turned out it meant the employers were just withholding it from their paychecks and submitting it directly (as opposed to paying the nanny the gross amount and the nanny owing a tax balance at the end of the year).[/quote]
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