Generally, the employer contribution costs an additional 10% on top of your employee’s salary. For example, if you pay $500 a week, paying nanny taxes costs about $50 a week*. This cost includes Social Security, Medicare, New York Unemployment and Re-employment taxes and federal Unemployment taxes.
Withholding nanny taxes affects your employee’s salary about 20%. For example, if you pay $500 a week, your employee will take home around $400*.
*These are estimates which vary based on actual salary, employee exemptions and annual unemployment tax rates and wage caps.
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