Is this her first job in the United States?

Yes. We've covered all of that.

Anonymous wrote:Thank you. This is all helpful. I think the nanny's after tax rate is very close to our budget, its just a side of the coin I've never thought about as an employer because it depends on her deductions. If that is the only variable then I think she is within our budget. I just hope I'm not overlooking something!

Have you talked about paid vacation/sick days/holidays? Also mileage reimbursement (or nanny car)? And guaranteed hours? Those are the biggies!

Anonymous wrote:Google a payroll calculator. Use it to figure out what you can afford, and what that equates into for a gross (pre-tax) wage. Breedlove (now Homepay) has a good one.

OFFER THE NANNY THE GROSS WAGE. Print out an example of what her paycheck would look like post taxes. You will need her exemption preferences in order to do this.

DO NOT OFFER HER A NET WAGE. I repeat, do not offer her a net wage. You do not want to fall into that trap.

This. Offer the gross wage. Withhold taxes so she gets a net paycheck and you can calculate what that would be. If she gets a return when she files her taxes she gets a return.

Google a payroll calculator. Use it to figure out what you can afford, and what that equates into for a gross (pre-tax) wage. Breedlove (now Homepay) has a good one.

OFFER THE NANNY THE GROSS WAGE. Print out an example of what her paycheck would look like post taxes. You will need her exemption preferences in order to do this.

DO NOT OFFER HER A NET WAGE. I repeat, do not offer her a net wage. You do not want to fall into that trap.

Thank you. This is all helpful. I think the nanny's after tax rate is very close to our budget, its just a side of the coin I've never thought about as an employer because it depends on her deductions. If that is the only variable then I think she is within our budget. I just hope I'm not overlooking something!

Here is another short thread that lists a lot of the expenses above the hourly rate that you expect with nanny care. Figure out your budget, and look for a nanny that will be happy in it. If you can't find one, that may mean you can't afford to have a nanny, or you need to rethink your budget.

http://www.dcurbanmom.com/nanny-forum/posts/list/328012.page

I strongly suggest that you decide what you are willing to pay and work with that number. If it's $18/hr, and she can't live on her take-home, or feels it isn't enough, then you aren't a match.

You do not want to stretch yourself so much to meet a nanny's rate that you resent every extra penny you have spend all year, or so that taxes or lunches or a raise or a Christmas bonus become an impossible burden. A nanny who feels like she is "doing you a favor" on her rate is likewise likely to feel unhappy, if not now, soon.

PP here. First link is a conversation about why you should focus on gross, not net (mainly because nanny could claim any number of deductions and get a refund, which would essentially up her pay rate if you were paying her based on a net rate). Second link includes a post from someone who laid out tax rates.

http://www.dcurbanmom.com/nanny-forum/posts/list/327468.page#3205390

http://www.dcurbanmom.com/nanny-forum/posts/list/316014.page#3159736

DH tells me I got it wrong in my subject line. The nanny is requesting a weekly pay rate after taxes, which is net, not gross. Clearly I am confused and up too late.

We've gone through the nanny search and have selected a nanny we would like to hire, but there is one problem. When we talk about her pay, she is focused only on the post-tax weekly pay check. In her words, the amount she receives each week after I (the employer) "pay all the taxes." On the one hand, I understand why this is the amount she cares about since this is what she has to budget each week. However, I'm having a tough time figuring out what this will cost me and I don't want to end up owing thousands (or even hundreds) of dollars at some point. Q1- Are there any other taxes I withhold from an employees pay check beyond: social security (6.2%), Medicare (1.45%), VA income tax (~5.75%), and Fed Income Tax (% depends, based on withholdings, but this nanny has told me what she claims on her W-4). I realize there are additional employer taxes as well (social security, medicare, and state and federal unemployemnt insurance). Q2- It seems to be the norm for nannies to talk about pre-tax hourly rates, so is it a red flag that this nanny wants to talk only about the post-tax rate for the whole week? Thank you for any advice!