Reply to Nanny hourly rate (net vs gross)

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[quote=Anonymous]Hi - I am about to hire a nanny for the first time. Common hourly rates I hear in NW DC for one toddler go from $17-20 per hour. It's getting really confusing because I'm not sure if this is supposed to be gross or net. The nannies I have talked to seem to want a "net" paycheck. When I ask other parents, they tell me they just pay for the employer portion of the taxes and that nannies handle their own taxes, so they agree that they provide the nanny with a "net" paycheck. From my understanding, social security and Medicare taxes are shared, with one portion paid by employer and another portion paid by the employee. Therefore, the employer needs to withhold Medicare and Social Security taxes from the employee. I think it seems fair to me that the hourly rates are "gross" since I have no control of the tax situation of my nanny and how that is going to affect her withholdings.

Any thoughts on this? Do you think a fair hourly rate of $17 or $20 per hour should be gross or net? This can make a huge difference in the employer budget!
Thanks for your input.[/quote]

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