Now-a-days, a decision is being made by may families with nannies to pay their nanny tax in the legal way. That means they are doing appropriate paper work to pay the taxes in proper way. They are willing to make a nanny as a legal employee.
Many nannies are not able to understand that why families are concerning about tax and nannies have worry about that money that will be cut in big amount yearly from their salary. But, it is important to understand that nannies can get some benefits by legal taxation. Parents should explain about legal taxation and some benefits of nanny to the candidates who come for interview to join as a nanny.
A nanny is considered as a household employee and she can be provided with social security and medicare. Employer need to pay federal unemployment taxes as per salary of the nanny and since then nanny will be eligible for such types of benefits like other employees. An unemployment insurance will be provided to nanny then if she losses her job then she can get salary for six months.
Nanny will get legitimate employment status. Without legal employment status, it is difficult to take a loan, applying for a credit card, getting health insurance or applying for future jobs.
It is important to be aware of nanny about paying nanny taxes right from interview. Parents should explain about some benefits to nanny and family of paying taxes legally. By this house hold can prove their loyalty.