Reply to Senate Bill No. 804 – VIRGINIA - Minimum Wage for Au Pairs

Forum Index » Au Pair Discussion

Reply to "Senate Bill No. 804 – VIRGINIA - Minimum Wage for Au Pairs"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]APs are deluded if they think it really gets them more. The state and federal gov't will be taking considerably more in taxes, which would have to be deducted from the weekly paycheck, so no more dodging income taxes by simply not filing.

Also, there's a significant conflict of interest in the groups promoting this and including APs. The nannies, housekeepers, etc. want to kill the AP program in the hopes that their services become more in demand because they've gotten rid of lower cost options for families.[/quote]

you need to buy yourself a calculator.

Currently if an Aupair works 45hrs a week she makes $4.44/hr. That same AuPair, after mimimum wage gets increased in VA to $10/hr will be making $500/wk (she now gets overtime). Taxes are no different, she still will not have to pay into FICA, as this is a federal issue. her tax rate will go up very marginally.  They pay taxes now.

You think someone grossing $200 today, but then grossing 500 in July will somehow make the same amount of money? She will go from the 10% bracket to the 12% bracket. In Massachusetts, employers can deduct up to $77/wk for room and board. AuPairs still come out on top. However you are correct. If I needed childcare for 45hrs a week, plus the agency fee, I would not mess with the drama and hassle of an AuPair.[/quote]

You need to figure out where the $195.75 comes from.

The State Dept already takes into account federal minimum wage: $7.25 x 45 = $326.25
$326.25 with a 40% deduction for room and board = $195.75

APs make full federal minimum wage, NOT $4.44/hour.

And many MA host families are using a payroll service because they do have to take into account state and federal taxes on a weekly basis. [/quote]

Their w2 shows 195.75/wk. If they work 45hrs a week, their earnings are $4.35/hr. All agency fees are earned and reported by their sponsoring agency. This money is not "earned " nor is it reported as wages.

Additionally in MA is it not mandatory that families withhold. It is nice to do, but not a requirement. If families choose to use a payroll service for this task, that is their choice. [/quote]

What w2?[/quote]

NP, but when they report in wages. Another poster is claiming 45hr a week APs make minimum wage as it is, which is simply not true. If it were that would be reported as income.[/quote]

I mean, if you don’t believe that then you’re welcome to read the primary source yourself. The FR notice from when the regulations were originally promulgated: 60 FR 8552, Feb. 15, 1995
https://www.govinfo.gov/content/pkg/FR-1995-02-15/pdf/95-3597.pdf
The stipend is calculated based on economic data on the average value of room and board provided to au pairs and pegged to federal minimum wage.

This is the crux of the issue—room and board does not have to be reported as income because they are not employees in the traditional sense. They are participants in the exchange visitor program. Application of state labor laws which are interpreted to supercede these regulations unravel that relationship. They will have to report the extras received (cell phone, car use, etc) as income and will be subject to state and local taxes in addition to federal. They will also only be paid for hours worked. Which is why the net benefit to full time APs is negligible and probably worse for APs who work fewer hours. [/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