![]() ![]() ![]() As two people with professional licenses, we did not want to get involved in a situation like that and passed on this otherwise lovely person. We met one great candidate who was looking for a cash job because she did not have a work visa. These cash arrangements are bad for the nanny if they are trying to build employment history, get injured on the job, file for unemployment assistance, or want to collect a nice Social Security check in retirement. While a wad of cash every 2 weeks is a good idea for domestic employees looking to maximize their take-home pay, it is not legal. 2) Insist on a nanny who will also follow the tax rules We use a company that just deducts from our checking, figures it all out, cuts our nanny a paycheck with a paystub and retains all of the tax information (I have no financial relationship with this company other than being a client). None of this is particularly complicated but it all needs to be done and there can be consequences for those who ignore these rules. You will need to file a Schedule H with the IRS. You will be responsible for employer taxes and unemployment insurance. You’ll need to produce an I9 form proving that the nanny is eligible to work in the United States. Certainly, for a nanny making what you hope is a living wage you’re going to need to do this “over the table.” You will need an Employer Identification Number (easy to get from the IRS) and a way to calculate payroll. As strange as it sounds if you have a cleaning lady for $100 twice a month the IRS says very clearly that you should not just be using Venmo. If you pay a domestic employee more than $2100 a year the IRS says you need to treat them like an employee, not a contractor. This is a bad idea and clearly not consistent with IRS rules. ![]() 8 Tips for Hiring a Nanny 1) Follow IRS rules and make the nanny an employee Here are some tips and tricks my anesthesiologist wife and I learned on our own journey. Many busy docs will find themselves hiring a nanny to care for their kids. Daycare is an option, but many daycare centers are not open at 5 am when an emergency doc is headed in for her 6 am shift. If you’re lucky enough to have a great parent-in-law who wants to come over and take care of things then stop reading now and go study how you set your portfolio. At physician levels of income, most people avoid the second income trap and especially in two physician homes it usually makes financial sense for both parents to work. You love your little bundle of joy - but you gotta go to work. This is especially true for households where both spouses are working and almost certainly true for dual physician households. Many couples will end up paying for childcare in one form or another. Physician Wellness and Financial Literacy Conference – Park City.Continuing Financial Education – Las Vegas.Financial Wellness and Burnout Prevention for Medical Professionals. ![]()
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