Hiring a Nanny: Legal Issues
As an Employer you have responsibilities to the following Government agencies:Immigration and Naturalization service (INS):
Parents must verify their nanny’s legal status and keep copies for their records. Both must sign Form 1-9 from Immigration and Naturalization Service verifying documents have been checked supporting an employee’s eligibility to work legally in the U.S. Tel: (800-755-0777) or www.ins.gov
Internal Revenue Service (IRS):
Parents who pay a caregiver $1,300 or more in a calendar year are required to pay Federal and State Employer taxes.
- Internal Revenue Service, Federal Household Employment Tax Laws, Publication #926 (800-TAX-FORM) (www.IRS.USTREAS.gov)
- California Employment Development Department for California Household Employment Tax Laws (415-929-5700) http://www.edd.ca.gov
- To calculate taxes paid to caregiver: www.4nannytax.com
- Payroll Tax Accounting Systems:
Breedlove and Associates: www.4nannytaxes.com
NannyPay (software program) www.essentia-soft.com
State of California requires that parents provide Worker's Compensation Insurance. This can be obtained by putting a rider on an existing homeowner's insurance or tenant's insurance policy at a nominal cost. Caregivers must work at least 52 hours or earn at least $100 in 90 calendar days to qualify. Legal status is not a condition of eligibility.
Department of Motor Vehicles (DMV):
Caregivers residing in the U.S. longer than 20 days are expected to have a valid California Driver’s License. Penalties for driving without a valid license include impounding the car and issuing a Court appearance notice to the unlicensed driver. You can order driving records online: http://www.dmv.ca.gov. If a caregiver uses the parent's automobile she should be added to auto insurance policy as an additional insured driver. If she uses her own car, she should have adequate coverage at least equal to the parent's coverage limits.
Alyce Desrosiers, LCSW provides guidance and direction to ensure your childcare arrangement fits your family’s unique needs. She can be reached at 415-331-NANI