On Nanny Contracts and Nanny Taxes
For Nannies (and Parents!)
Whether you're starting a new job or your current job responsibilities are changing it's important to put together or update your nanny contract. You don’t want to feel left with a million questions when starting a new job or changing your current position. And with the Fourth around the corner, contracts are on our minds.
You might be asking things like “What holidays do I have off? Do I get gas compensation? Am I being paid hourly or salary? How many weeks of vacation do I have? What are my job requirements?” before you accept a position. And we often get so wrapped up in getting a job that when we finally get the offer, we forget to get all those details in writing.
Listen, we know it’s an uncomfortable situation to be in. You don’t want to come to your new (or current) boss with a list of what feels like demands. But here’s the thing: in any other industry contracts are a give-in. The nanny industry is no exception.
Enter; the nanny contract.
It is easy to specify your needs into your nanny contract so that both you and your employer are agreeing and acknowledging on what your job should consist of. Of course, remember to be flexible - we are nannies and we know families aren't always perfect. Here are some important topics you don’t want to forget to include in your nanny contract.
Work Schedule: Outlining the days and hours of your work schedule.
Job Requirements: What needs to be done needs to be in writing!
Covid Requirements: It's important to be aware of any vaccination, boosters, mask requirements that match your employer's needs.
Compensation: This is KEY. This will outline how much you will be paid and when. Be sure to make this super clear for both parties.
PTO: Make sure you agree on the amount of paid sick days and vacation time your employer will compensate you for. Be specific!
Holidays: Are you off on national holidays? What about bank holidays? Do you get overtime pay? If you just got burned by your employer this Fourth of July weekend make sure you ask to revisit your contract ASAP!
Other things to keep in mind are:
Ground for termination
Social Media and Confidentiality Clauses
Travel Details, Mileage Reimbursement & Expenses
If you have any questions or would like some help in creating a proper nanny contract please feel free to reach out to us directly!
On Paying Taxes as a Nanny
For Nannies
You may be thinking to yourself: Should I be paying taxes as a nanny? How do I file? Am I an independent contractor or an employee? Let’s help you break down what you need to know this tax season.
What is Nanny Tax?
Nanny taxes are a combination of both federal and state tax requirements for those families who hire household workers such as nannies, housekeepers, and senior care. For 2023, these taxes come into play when you are paid $2,600 or more in a calendar year. Basically, if you make more than $2,600 a year as a nanny.. you should be paying taxes.
Am I an independent contractor or employee?
In short, nannies are employees. When someone is hired to work in a home, they are legally considered an employee and the family the employer. If a family employs you to perform duties in or around their home and have the right to control when, where, how or by whom the work should be performed, then you are considered a household employee.
How do I pay taxes?
Independent contracts get 1099s. Employees receive W-2s from there employer. So (you guessed it!) you should be receiving a W-2 from your employer to file your taxes every year. Suggest to your boss that they use a Payroll Service that will make this super easy for them.
What if I am paid under the table?
Whatever you and your nanny family choose, is not really our jurisdiction. It is important though to understand the implications of not paying taxes. Working under the table can have major consequences. You could end up having to pay a lot of back taxes and your nanny family can find themselves being audited. You also wouldn’t be able to file for unemployment should you loose your job - or we go into another global lockdown. We recommend asking your boss to revisit your nanny contract and begin being paid over the table.
Whatever your situation is, we are here to support you.
Reach out to our team with any questions on paying taxes as a nanny.