It is required by law that you pay Social Security, Medicare and Federal unemployment taxes on all household employees. You may also be responsible for other state and federal taxes depending where you live. Contact your local IRS and State Department of Labor for more information. Nannies and other household staff are not independent contractors and should not be expected to file as one.
Offering health insurance is one of the most important benefits you can offer to your employee and a very good way to attract the best candidates. Negotiating proper medical insurance will professionalize your position, show your appreciation, and allow you to maintain consistency in your household.
The work agreement is a very important tool in this industry, more so than any other profession. It helps define your job description, expectations of the employee, household rules and regulations, benefits, incentives, etc. This agreement is one of the keys to a successful, long-term relationship, the first key is communication.
Our employees want the same benefits that you or I would want for ourselves. We educate our clients on the current market salaries and advise what benefits are being offered in our industry today but ultimately the employer will decide what they offer to pay the candidate.
Payroll and Tax Services:
Internal Revenue Service:
Insurance for Domestic Staffing: