Paying a Nanny on the Books – by GTM Payroll & HR

by | Oct 17, 2023 | Uncategorized | 0 comments

Check out this great article by GTM Payroll & HR on the topic of paying a nanny on the books. Read on to see what this means, how to do it, and what your responsibilities are as an employer. Additionally, the article explores facets such as the consequences of trying to pay “off the books”, discussing this with a nanny, and why nannies must be classified as employees vs. independent contractors!

Paying a nanny on the books may seem like a hassle, but it actually has many benefits for both the employer and the employee. Here are a few reasons why it’s a good idea to pay your nanny legally:

  1. Legal protection: When you pay your nanny on the books, you are protecting yourself from legal and financial ramifications. If you don’t pay taxes for your nanny, you may face penalties and fines from the government. Additionally, if your nanny is injured on the job and you haven’t been paying worker’s compensation insurance, you could be held liable for their medical bills.
  2. Better job security for the nanny: When a nanny is paid legally, they have more job security because they are entitled to benefits such as unemployment insurance, social security, and Medicare. This can help a nanny feel more secure in their job and may lead to better job satisfaction.
  3. Improved relationships: Paying a nanny on the books can help build trust and improve relationships between the employer and the employee. When everything is legal and above board, both parties can be more confident in their relationship and focus on building a positive working relationship.

We fully support the fair and equitable treatment of all nannies, and this piece was a wealth of information for nannies and families alike – to advocate for themselves and create a harmonious work environment! Paying a nanny on the books is not only the right thing to do, but easiest in the long run for everyone!