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Calculating Nanny Overtime

Posted by HomeWork Solutions on 8/25/11 9:12 AM

Many families have children heading back to school this month. It is not uncommon for a nanny who cares for both an elementary school child and a pre-schooler or younger to negotiate two different hourly rates - one for one child only, the other for both. The puzzle for many nanny employers is how to calculate the correct overtime rate. Legally, the "regular rate of pay," that which is used to calculate the overtime differential, must be at least the weighed average of all rates used in the work week. Here is an example:

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Topics: nanny payroll, nanny hourly wage, nanny overtime

Nanny Social Security Rate Decrease

Posted by Kathy Webb on 1/28/11 9:08 AM

This is a reminder that the nanny's (employee's) Social Security Tax Rate is reduced to 4.2% for 2011. According to Internal Revene Service guidance, all employers must be making correct payroll tax deductions no later than January 31, 2011 and they must make refunds to the employee of any over-collected Social Security Taxes on wages paid in 2011 by that date.

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Topics: nanny payroll, nanny payroll tax, nanny tax, nanny social security tax rate

Illinois Nanny Withholding Tax Rates Updated

Posted by Kathy Webb on 1/17/11 2:31 PM

Illinois Governor Quinn signed legislation on Thursday, January 13, 2011 that increased income taxes for Illinois residents.

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Topics: nanny payroll, nanny payroll tax, calculate nanny payroll tax

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