A double-taxed income? Makes you think doesn’t it?


By Wendy Sachs Co-President International Nanny Association
I applaud the in home child care providers who are hard at work pushing for fair wage and work rights for all domestic workers. All professionals deserve to be paid fairly, particularly nannies who take on the serious responsibility of helping parents raise their children in an unsupervised environment.
I understand the need to seek out the wages that allow child care providers to make ends meet and reach their goals. Nannies salaries should reflect their background and experience, not their commitments to a lifestyle, though. Entry level nannies are typically at the lower end of the pay scale with more experienced “seasoned” nannies commanding a higher wage. Like all other professions, education and number of years devoted to developing skills typically would be revealed in a nanny’s higher salary.
All nannies should be able to legally accept employment in the US. Concurrently, there should be a Domestic Employer’s rights bill, too. One of the reasons that wages are depressed is that in home providers are paid in dollars that are presumably taxed twice. Hear me out on this. When an employee of a business or non profit is paid, that expense is a before tax expense, it is paid in non taxed dollars. That goes for all benefits paid as well, all before taxed dollars. The domestic employer does not get that treatment. The domestic employer brings home their after tax money to then pay the nanny and the SAME related employer taxes. It is ALL paid from his net amount. Hence the money the nanny receives in double taxed. Admittedly, there are child care tax credits. But the amounts pale to what the number would be if the domestic employer had the same tax treatment as the non domestic employer. Perhaps if the tax code didn’t discriminate against the domestic employer, the domestic employee would ultimately earn a better wage.