Nanny - Compensation for mileage?

parisproposal · July 2009

For those of you that have/had a nanny, how did you compensate for miles driven (ie: to classes, activities, etc.) by her in her vehicle. For example, did you agree to a certain $ amount per week or reimburse for cents/mile (ie: IRS rate). Also, an example of a written agreement if anyone has one would be greatly appreciated. TIA!

chiromommyMichelle · July 2009

Are you paying her as an employee? Or is she a self employed person? If she's self employed, she gets the IRS deduction for the mileage, so I wouldn't pay anything. Otherwise, I'd do it per mile at the current IRS rate.

Sam78 · July 2009

How could she be self employed? (I'm asking for info, not intending the question to be read rudely although the phrasing could be seen that way) Most nannies wouldn't fit into this category right?

chiromommyMichelle · July 2009

It all comes down to who is paying what. A self employed person (no matter what industry) is paying their own SS, doing their own withholding, filing a Schedule C with their return. I have a side business that I do this with. They are an independent contractor, not your employee. If you are paying SS, withholding taxes, carrying workers comp coverage on her, then she's your employee.

MTbridess · July 2009

I'm pretty sure that if a majority of the daycare/nanny work occurs in your home, a nanny has to be treated as an employee of that household and cannot be a contract employee. It's different with caretakers than with other businesses.

Anyway, I usually reimburse based on a rate of miles, but my nanny doesn't always track her mileage, so instead we end up giving her some extra money toward gas and such.

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Nanny - Compensation for mileage?

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