The logistics of how to pay a nanny or other household staff member is one of the most frequently asked questions that we receive at Household Staffing International. To put it simply, the answer is always “legally.”
Legally Paying a Nanny
Although you may not have a desire to run for public office, (exposing yourself to congressional level background checks), there are many other reasons to employ your staff properly: It is self-serving for you to protect yourself, your family, your assets and to limit your exposure to risk. After all, your success is rooted in your ability to measure risk versus reward. The hundreds or thousands of dollars you believe you may be initially saving pale in comparison to the potential amount of penalties, lawsuits and fines that can result when you pay a nanny illegally. I haven’t even mentioned an employee becoming injured at work or applying for unemployment benefits once they are no longer employed by your family!
Nanny Payment Options
So we’ve convinced you to pay your nanny or other household staff through legal means. Terrific! Now you’re probably asking: “how do I get started?” As I see it, you have three options:
- You can process the taxes on your own (make sure it’s done correctly).
- You can hire your accountants to set up the system and either process it for you or give you the ability for processing.
- You can subscribe to a reputable payroll service specializing in processing payroll for household staff, which offers many benefits, making the process easy and affordable and takes the guesswork out of being compliant.
For more information on how to pay a nanny, nanny taxes and the requirements of household employers, we encourage you to go to http://www.dol.gov/. For household staffing inquiries, we encourage you to get in touch with us!