I agree w/ the pp's. The constant attempts at renegotiation are a major red flag in my opinion.

And yes - all compensation needs to be reported, with taxes paid/withheld, etc...

The compensation package seems reasonable to me.

I think you need a new nanny.

In response to your questions -
1) All salary needs to be reported and payroll taxes need to be withheld, correct?
Yes, this is correct. Cash bonuses must also be included in her income and taxed. You do have the option of withholding just social security and medicare tax and not her income taxes which would allow her to take home more money at the time the bonus is given.

2) Is our nanny's compensation par with the market in NW DC?
I don't know the specifics of how your compensation package compares to others in your area however, I do know that he compensation package you offer is a good one.

Just tell her no. Healthy boundaries are a good thing, for adults and children.

So questions: 1) All salary needs to be reported and payroll taxes need to be withheld, correct?; and 2) Is our nanny's compensation par with the market in NW DC?

Yes to both questions. Its bad faith to try to keep renegotiating your contract in such as short time. Its also a very bad sign for the nanny to be asking you to do illegal tax practices especially when she knows that you need to pay her legally. If you and your partner do decide to increase the salary, I would honestly search for a new nanny not reward this type of behavior. No matter what you do she will be trying to manipulate you.

Hi -

My DC infant nannyshare (4 mo. olds) has been working with a nanny. We pay her $800/week gross, 2 wks vacation, 1 week sick leave, all federal holidays paid and the week of Easter AND Christmas off.

Our nanny's level of care seems good. But she's continually trying to renegotiate her contract. This time around it's about overtime. She asked for OT to be paid in cash flat, without withholdings. We've only worked with her since November and she's tried to relitigate her contract now three times after signing.

My other nannyshare family seems to want us to accommodate our nanny, but my husband and I are both government workers and I need to put everything in the books.

So questions: 1) All salary needs to be reported and payroll taxes need to be withheld, correct?; and 2) Is our nanny's compensation par with the market in NW DC?

Thanks so much for any guidance.