{"id":4377,"date":"2014-03-25T11:10:12","date_gmt":"2014-03-25T15:10:12","guid":{"rendered":"http:\/\/gtm.com\/household\/?p=4377"},"modified":"2020-11-10T15:41:28","modified_gmt":"2020-11-10T20:41:28","slug":"hourly-vs-salary","status":"publish","type":"post","link":"https:\/\/gtm.com\/household\/hourly-vs-salary\/","title":{"rendered":"Hourly vs. Salary Wages for Nannies"},"content":{"rendered":"<p class=\"MsoNormal\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-4380 img-rounded\" src=\"https:\/\/gtm.com\/household\/wp-content\/uploads\/Sunglasses-300x199.jpg\" alt=\"hourly vs. salary\" width=\"300\" height=\"199\" \/>Deciding to pay a nanny or other household employee hourly vs. salary wages is another key element of household employment. Generally, most household employees are paid an hourly wage, especially those that work part-time. This allows for more accurate record-keeping which is mandatory according to the <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener noreferrer\">Fair Labor Standards Act<\/a> for hourly workers. This is especially true because, according to the FLSA and many state\u2019s labor standards, household employees are classified as non-exempt to overtime laws and therefore must be paid on an hourly wage basis. However, salaries are sometimes appropriate for long-term employees who work full-time and who generally have managerial or supervisory responsibilities (like household managers). There are important considerations for both.<\/p>\n<p class=\"MsoNormal\">An employee paid an hourly wage is based on the actual hours they&#8217;ve worked in a given payroll cycle. On the other hand, a salaried employee is paid based on an agreed annual salary amount, divided by the number of payroll cycles in a calendar year. The most common payroll cycles are:<\/p>\n<ul>\n<li>Weekly, giving you 52 cycles for the year;<\/li>\n<li>Weekly-Lag, which lags your payroll by one week, giving you 52 cycles in the year;<\/li>\n<li>Bi-Weekly, giving you 26 cycles in a year;<\/li>\n<li>Semi-Monthly, giving you 24 cycles; and<\/li>\n<li>Monthly, giving you 12 cycles per year.<\/li>\n<\/ul>\n<p class=\"MsoNormal\">For example, an employer and a nanny agree to an hourly wage of $12.50. To compute the compensation, you would multiply the hours (40) times their rate of $12.50 to come up with a $500 weekly rate. For a salaried employee, you would take the annual salary (for example, $26,000) and divide by 52 pay frequencies to come up with a $500 weekly salary.<\/p>\n<p class=\"MsoNormal\">Once the agreed compensation has been discussed, employers should always communicate in writing an hourly compensation to their nanny, keep proper <a title=\"Household Employee Time Sheet\" href=\"https:\/\/gtm.com\/household\/wp-content\/uploads\/household-employee-attendance-record.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">time cards<\/a>, and document the hours worked on the employee&#8217;s pay-stub each pay cycle.<\/p>\n<p class=\"MsoNormal\">For help calculating hourly vs. salary wages, please use our <a href=\"\/household\/learning-library\/tax-calculators\/\" target=\"_blank\" rel=\"noopener noreferrer\">tax calculators<\/a>. For more information, <a title=\"Contact Us\" href=\"\/household\/contact-us\/\" target=\"_blank\" rel=\"noopener noreferrer\">contact<\/a> GTM&#8217;s Household Employment Experts at (888) 432-7972.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Deciding to pay a nanny or other household employee hourly vs. salary wages is another key element of household employment. Generally, most household employees are paid an hourly wage, especially those that work part-time. This allows for more accurate record-keeping which is mandatory according to the Fair Labor Standards Act for hourly workers. This is [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[76,75],"tags":[27,31,34,41,42],"class_list":["post-4377","post","type-post","status-publish","format-standard","hentry","category-hiring-an-employee","category-household-payroll-taxes","tag-hiring-practices","tag-household-employer","tag-household-payroll","tag-nannies","tag-nanny-payroll"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Hourly vs. Salary Wages for Nannies - GTM Payroll Services<\/title>\n<meta name=\"description\" content=\"Deciding to pay a nanny or other household employee hourly vs. salary wages is another key element of household employment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gtm.com\/household\/hourly-vs-salary\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hourly vs. Salary Wages for Nannies - 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