Should nannies be paid on the books or shall they be kept under the radar? Neither employer nor employee pay taxes, the labor may be cheaper for these employers if these nannies are not protected under legislation, which is why some nannies are fighting for their equal share.
Americans have always looked at domestic labor differently than of those of other jobs, if put into a category it may vey well be classified as a “blue collar” job for it has been overlooked since the 1930`s. Those who are looking into their future and not just looking at their current earnings and compensation as a short term benefit are seeking protection. Domestic workers are real workers which I am sure have families of their own to support, as they are a nanny to someone’s child who has a mother at work, that nanny has a child waiting for their mother to come home from her long shift also. The employer and the employees “needs” intersect in the cloudy economy, neither take part in their fair share of taxes and the nanny may be glad to be paid in cash however if they don’t want to be deprived of their Social Security benefits, this is a disadvantage.
Now another issue may come into play, the status of these nannies. Undocumented nannies, for the majority of the laws like the one implemented inNew Yorkare instituted to protect these aliens, however they will be reluctant to come forth with violations. In July 2010, “New York Senate passed legislation to protect nannies, housekeepers and other domestic workers, requiring that they be paid overtime after eight hours; get at least one day a week off, seven paid sick days a year and five paid vacation days; and be given 14 days notice of termination, or equivalent pay.” For some this may be a relief, everyone should be entitled to their day off, a sick day and other advantages “on the book” jobs have to offer.
New York Nannies typically earn $12 to $15 an hour off the books and those on the books can earn up to $2 more an hour which will offset the taxes. Only 9 percent of city parents pay their nannies completely on the books with another 14 percent paying them just partially above the books. Only 3 percent of nannies receive health care or partial health care. With this economy being in shambles putting nannies on the books may be too difficult for parents to start paying the extra taxes and being as though jobs are tight employees are less likely to risk the chance of becoming unemployed for bringing up such a topic.
Being paid on the books bring many advantages; you build up an employment history for future and present life for things such as student loans or a mortgage, unemployment insurance which when you become unemployed because of no fault of your own you get up to 50% of your earnings, disability benefits if you are in need of maternity leave or become ill which are all things granted to job paying on the books.
Caring for children is a difficult task and these nannies are doing their jobs to the best of their capability, however with this in mind will house wives and stay at home moms argue that they too are carrying out a full-time job and want to be recognized also. Requiring that nannies be paid on the books may lead to an increase in day care at a higher cost because of an increased demand with also a possibility of mothers choosing to leave their jobs to tend to their children themselves at home.