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You’ve found the perfect nanny for your family. You’re now in the process of negotiating a salary and your nanny says they want to be paid \u201coff the books.\u201d You know the importance of being compliant with payroll and taxes but your nanny likes the additional money in their paycheck. However, for the small cost in taxes, your nanny gains important short-term and long-term advantages. Here are six topics to discuss when talking about taxes.<\/p>\n
If your employee applies for a car loan, student loan, mortgage or even a credit card, they\u2019ll need to show that they can pay monthly installments. Being paid legally provides that. If your employee\u2019s pay is not documented, they have no way to show that they have income.<\/p>\n
Getting paid \u201con the books\u201d creates a work history. This is also important when your employee applies for a loan, credit or their next job.<\/p>\n
Let\u2019s say your nanny has worked for you for a few years. Your children are now school age and no longer need a full-time nanny. Unemployment benefits will partially replace your employee\u2019s lost wages for a period of time while they look for a new job.<\/p>\n
Money paid by you and your employee into Social Security and Medicare is set aside to help pay for living and medical expenses when your employee retires.<\/p>\n
With a worker\u2019s compensation policy in place, your employee will receive assistance with medical expenses and lost wages if they are injured or become ill on the job. Workers\u2019 compensation is required for household employers in many states.<\/p>\n
The Affordable Care Act requires everyone to have health insurance or pay a fine. A health insurance marketplace has also been created to help people find coverage. If your employee buys a policy through this marketplace, they could qualify for a subsidy and cut the costs of their insurance. Provided, of course, they are being paid legally.<\/p>\n","protected":false},"excerpt":{"rendered":"
You’ve found the perfect nanny for your family. You’re now in the process of negotiating a salary and your nanny says they want to be paid \u201coff the books.\u201d You know the importance of being compliant with payroll and taxes but your nanny likes the additional money in their paycheck. However, for the small cost […]<\/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":[75,78],"tags":[88,89,90,54,58,61],"class_list":["post-6407","post","type-post","status-publish","format-standard","hentry","category-household-payroll-taxes","category-retaining-employees","tag-compliance","tag-medicare","tag-nanny-taxes","tag-social-security","tag-unemployment","tag-workers-compensation"],"yoast_head":"\n