Nanny Taxes
On social media nannies often express that they are shocked when they get their first paychecks from a new job and realize the amount is lower than they expected when offered the job. The confusion often occurs because parents typically offer nanny candidates a Gross wage but the Net amount employees take home is less after taxes are withheld.
Gross Wages refers to the amount of money earned prior to taxes being withheld. Net Pay is the amount actually taken home after paying taxes.
Typically when parents offer nannies a job they offer the Gross Wage. Although most nannies want to know what their “take home pay” will be after taxes Net Pay varies by individual.
To estimate Net Pay employees need to first fill out a Federal W-4 and a State W-4.
Then nannies and parents can use a Employee Paycheck Calculator to translate the Gross Wages.
When interviewing for nanny jobs assume the rate parents are advertising is the Gross Wage that they will pay prior to taxes being withheld.
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