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Reply to "Are the compensation rates mentioned here before or after taxes? "
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[quote=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! [/quote]
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