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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Ask the nanny what she means (in my experience, $20 net would be a very high wage for a nanny share around here).

But regardless of what the nanny wants, as an employer, it would not be wise to pay your nanny a "net" hourly wage.  Wages and taxes are calculated on gross amounts.  The nanny is an adult, and should pay income taxes like any other wage earner.  If she wants to negotiate a higher wage to try to account for what she might owe in income taxes, she is free to try.  But any agreement (and there should be an agreement in writing) should specify the hourly wage in gross terms, not net.  FYI -- before you employ a nanny, I strongly recommend that you read IRS Publication No. 926, the IRS Tax Guide for Household Employers.[/quote]

You and the other share family need to decide what your pay range is in gross terms, including any benefits, reimbursements (like mileage), and FICA taxes. Then, before you ask the nanny her rates, you need to specify that you are talking about gross per hour rates, and that you will be deducting her share of FICA taxes. It is optional to deduct income taxes, but it is still her responsibility to pay them.[/quote]
Why would you not deduct income taxes? Sounds pretty stupid.[/quote]

It's not required by the IRS for domestic employers. The nanny can do her own estimated taxes. If you're not using a payroll service, federal taxes are simple to withhold, but state taxes can be much more complicated (at least they are in Maryland). [/quote]

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