{"id":116,"date":"2024-12-09T08:00:00","date_gmt":"2024-12-09T08:00:00","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/caregivers-heres-how-taxes-and-payroll-work\/"},"modified":"2024-12-09T23:59:51","modified_gmt":"2024-12-09T23:59:51","slug":"caregivers-how-taxes-and-payroll-work","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/caregivers-how-taxes-and-payroll-work\/","title":{"rendered":"How do taxes and payroll work for nannies and caregivers"},"content":{"rendered":"\n

If you’re a nanny or in-home caregiver who makes more than $2,800 a calendar year from a family, it means you’re legally required to be on payroll. What does being on payroll mean, you may ask? It means taxes are withheld from your wages, and you receive a pay stub every pay period. <\/span><\/span><\/span><\/p>\n\n\n\n

Having a conversation with a potential employer<\/a> about money can be awkward, but it’s necessary to talk through gross wages, taxes and net pay so you can both budget accordingly and you know exactly how much to expect in your bank account each week. The first thing, though, is to understand how it all works. Payroll functions a little differently for you versus the family, so it’s important to understand the details as you move forward in negotiating your pay.<\/p>\n\n\n\n

How does payroll work if I’m a nanny or senior caregiver?<\/h2>\n\n\n\n

When you’re on payroll, you’ll have taxes withheld from the amount of money you earn each week. The family will also pay additional taxes on top of what they pay you. This means that both you and them have to account for a separate weekly total when discussing how much you’ll be paid. Keep this in mind as you’re doing research looking up the current posted hourly rates from caregivers in your area<\/a>.<\/p>\n\n\n\n

What is the difference between gross wages and net pay?<\/h2>\n\n\n\n

Gross wages are the amount of money you earn before taxes are withheld. Your gross wage determines how much in taxes should be withheld from your pay and how much in taxes the family will have to pay. Once all the appropriate taxes have been deducted, the amount you are left with is called your net pay \u2014 also called take-home pay.<\/p>\n\n\n\n

Sample nanny payroll scenario<\/h2>\n\n\n\n

Let\u2019s go through a sample payroll scenario to help clarify everything. Say you agree to work for a family for 40 hours per week at $18 per hour. Here\u2019s an estimate of how your paycheck would look every week:<\/p>\n\n\n\n

Gross wages:<\/strong> 40 hours x $18\/hour = $720\/week<\/p>\n\n\n\n

Tax withholdings<\/strong> (assuming single with no dependents on your W-4<\/a>):<\/p>\n\n\n\n