The Patient Protection & Affordable Care Act (also known as “ObamaCare”), is the major buzz in every industry right now. But, how will this affect the Nanny industry? We’ve collected some great articles from industry publications,and included some links to different informative sites for both families and nannies.
We often get questions from families and nannies about making health insurance part of the overall compensation package. Typcially nannies secure an individual health insurance plan and then the family will pay all or a portion of the monthly premium. There are tax incentives for families and nannies. Here is some more information to get you started:
Health Insurance Premiums Are Considered Non-Taxable Compensation
Because health insurance is critically important, the government uses tax incentives to encourage employers to provide coverage for their employees. Therefore, household employers can provide health insurance premiums and have it be considered non-taxable compensation. This means the entire amount of the premium is tax-free to you and also tax-free to your employee – making it a great way to increase the “take-home” pay for an employee without increasing your out-of-pocket costs. Read more »