When we say taxes, you say… boring? Confusing? Complicated? No worries – we’re here to help! As a nanny, it is so important to have a basic level of understanding about this topic. By law, we are all required to pay taxes and though it can seem like a burden, it’s important to remember that paying taxes actually comes with benefits and protections!
If you’ve read through any of our job descriptions you know that we list a rate in each one. These rates are always listed as gross figures, unless otherwise stated. So what exactly does that mean? Gross refers to the entire amount of money you get paid, before taxes or other deductions come out. Occasionally you may see “NET” listed after a rate. In that case, the rate refers to all the money you will actually take-home.
As nannies, you have an extremely important job and hold a great deal of value to your employers! You should want to be treated like the professional that you are, and part of the entails being paid legally. By being paid legally, you have an employment history that is vital to daily life when it comes to trying to get a loan or auto insurance, or even on future job applications. When you are paid legally you can claim unemployment insurance, social security, maternity leave benefits, or medicare benefits. Yes, there are taxes, but they actually come with very important benefits and protections!
Have more questions? Check out this video we put together on this very topic!