Frequently Asked Questions
Notable Nannies, along with the help of outside reputable resources, has elaborated this FAQs section for Nannies and Families to have a better understanding of the ins and outs of the Nanny world. We hope that you find this list of questions and answers useful and informative. If there is a question you may have that has not been answered here, we encourage you to CONTACT US
In a survey of household employers conducted by GTM Payroll Services, it was clear that hiring a nanny through an agency rather than using an online job site saved time, boosted retention, and reduced the hassles of bringing on board multiple nannies over a short period of time.
According to the survey, 64% of those that hired through an agency said the hassle-free process and time savings was a top reason they decided to work with placement professionals. Agencies also aim to put forth the best matches for their clients as 87% of families said security and the screening of candidates was a top reason for going with an agency.
The supposed benefit of using an online job site is a wider selection of candidates. However, 65% of respondents who used an online job site said the “number of responses from unqualified candidates” was one of the biggest drawbacks of going online to find a nanny. Sifting through applicants that do not match a family’s criteria can add time and frustration to the hiring process.
A family that goes through an agency rather than an online job site when hiring a nanny will get a higher quality nanny, one they will keep for longer, and they will spend less time finding the right match. For example, the survey found that 30% of families that hired through an agency had their current nanny for more than 3 years, while only 18% of those that hired through a website had their nanny for the same length of time. Also, 67% of agency-using families had one nanny in the past 5 years, where 51% of website-using families had just one nanny in that time frame. Finally, 61% of families that used an agency spent less than 20 hours on the hiring process, while only 33% of those who used a website spent less than 20 hours on the process.
And that is why we are here!!! Let NNA spend the time finding you career minded, reliable, trustworthy candidates to interview. Be confident in knowing we do the complete screening process including screening interviews, background, and reference checks. We will also be there for advice and support during the entire employment of your nanny.
Although, if the family wanted to do it on their own:
Employers are required to withhold social security and Medicare taxes if paying a nanny at least $2,100 during a calendar year. The taxes required to be withheld are the 6.2% social security tax and the 1.45% Medicare tax. Additionally, the employer must also pay a matching 7.65% portion of social security and Medicare taxes on the nanny’s compensation when it is time to pay the Nanny Taxes. Employers are only required to withhold Federal and State income taxes if the nanny makes that request.
Withholdings should begin with the first paycheck. If expecting to exceed the $2,100 limit, employers should begin withholdings from the outset to avoid the need to catch-up on withholdings from a later check. If an employer initially makes withholdings and does not reach the $2,100 limit, the employer can always repay the nanny the taxes withheld from earlier checks.
the employer will need to issue the nanny a W-2 by January 31st of the following year. Employers should ask each nanny to fill out a W-4 form right away. This provides the employer with all the information necessary in the event there is a need to issue the nanny a W-2. An employer needs to complete Schedule H when filing their individual income tax return for the year. Schedule H is used to calculate taxes due on the nanny’s withholding and the equal employer’s share of social security and Medicare taxes due. If an employer paid a nanny at least $1,000 in any calendar quarter, the employer may also owe a small amount for Federal unemployment taxes.
The employer may need to consider the need to make estimated tax payments. The Federal nanny taxes due are paid with the employer’s individual income tax return. However, there is a need to consider the additional Nanny Taxes due when questioning if estimated tax payments are required. Some taxpayers find it easier to remit the Nanny Taxes as quarterly estimated tax payments. Any state tax withheld would be remitted to the state separately. This is typically separate from state income tax returns, and rules can vary from state to state.
Good record-keeping is important. Records should be maintained for at least 4 years from the due date of the employer’s individual tax return, as protection in the event of a future audit. Records should include: Form W-4 completed by the nanny, dates of employment, dates and amounts of wages paid and taxes withheld, and proof of any tax payments made related to the nanny’s employment.
Nanny Taxes and Payroll - International Nanny Association
A Babysitter typically works on call or on a set weekly basis for only a few hours per day. A sitter is not put on the family’s payroll and are typically paid by the hour when employed.
An Au Pair is a young adult, typically aged 18 to 25, who travels to a foreign country for a defined period to live with a host family. The Au pair supports the host family with childcare and light housework while learning the language and culture of the host country. Au pairs typically sign contracts of 1 year and can renew for a second year. Au pairs are provided with room and board, and a stipend of about $200 weekly. In some cases, Au Pairs are also provided with a vehicle and a cell phone for personal use. NNA does not currently place Au pairs.
A Household Manager essentially keeps things running smoothly in the employer's home. Common house manager duties include grocery shopping, laundry, running errands, making appointments, coordinating travel, handling household billing, maintaining cars, buying gifts on their employers' behalf, etc. A household manager could be combined with nanny duties and this is usually employed when the family has older children and wants to provide their employee with full time hours.
If you are hesitant in introducing a formal document into the working relationship, we can assure you taking the time to draft and sign a nanny contract can protect both your family and your nanny. Notable Nannies Agency can help with this.