That's a pretty scary word, right? Something about our social culture has given this word such a negative condonation. Why is that? Is it the fear of losing your hard earned dollars and not seeing where the money is going? Could it be the excitement that comes from being a nomad?
In this article, we're going to bust some myths about payroll and taxes that will help put you at ease as you contemplate hiring an in-home employee - like a nanny.
Payroll is the process of paying an employee for the work they do. Whether you simply send them a Vemo transfer, give an envelope of cash (but really- who has time to go to the bank each week?) or set-up an automated system, that sends pay directly to your employee and generates a paystub, with minimal effort on your part, you need to do something.
How you pay your nanny is up to you. But if you're hiring someone to give you the time you need back in your day - why would you waste that time processing payroll when there are services that can help?
The process of paying an employee has been made really easy for you. You simply submit the worked hours and the wage agreed on and systems like Nanny Lane do the rest.
We get these questions ALL of the time. The simple answer is - why wouldn't you want to?
In many states - child care can be a tax deduction, but if you don't use a proper payroll system that's a lot of money you're leaving on the table (and not your kitchen table).
Setting up a proper payroll system also legitimizes your Nanny- which will make them a happier employee. If your Nanny is showing uncle Sam that they have a job and regular income, they'll be eligible for lending products with a bank, they can get a credit card and have financial flexibility, they won't have to be a secret nomad and they'll feel safe and worry-free while caring for your child.
Paying taxes on earned income also helps the community. By paying taxes, it puts money back into roads, schools, and infrastructure - all to improve the quality of life of your community, and the community you're raising your children in.