Another advantage of paying your nanny legally? You can use a Dependent Care FSA – offered through your employer – to get tax-free reimbursements on a portion of your nanny’s wages. Here’s how they work when you’re paying a nanny.
Don’t be fooled! You may need to pay nanny taxes when hiring a senior caregiver. If you’re considered their employer, you’ll need to comply with applicable tax, wage, and labor laws.
When you hire private, in-home senior care, you may become a household employer. While this will give you more control over the employment situation, a number of tax, wage, and legal nuances come along with being an employer.