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Domestic Help with Room & Board

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RPNewYork

Junior Member
What is the name of your state (only U.S. law)? New York
I am considering hiring a part-time (15 to 20 hrs per week), live-in nanny - US citizen or Legal Resident.
I plan to provide a room, utilities, food,and a cell phone. I plan to put her on the books and pay all applicable taxes.
Questions:
Can these benefits (room and board) be factored into her salary, or it the minimum wage still required?
If not part of salary, may I take a tax deduction for providing these benefits to my employee?
Where can I find more information so I do this legally. I've heard it's very complicated to handle the taxes by oneself.
Thanks!What is the name of your state (only U.S. law)?
 


mlane58

Senior Member
The Fair Labor Standard Act permits the reasonable cost or fair value of meals, lodging or other facilities customarily furnished by the employer and which are primarily furnished for the benefit of the employee, to be considered as wages. Therefore, an employer of a live-in domestic service worker may credit the reasonable costs (or fair value) of room and board against wages owed. The amounts which may be credited in this way may be set by the U.S. Department of Labor.
 

xylene

Senior Member
What is the name of your state (only U.S. law)? New York
I am considering hiring a part-time (15 to 20 hrs per week), live-in nanny - US citizen or Legal Resident.
I plan to provide a room, utilities, food,and a cell phone. I plan to put her on the books and pay all applicable taxes.
Questions:
Can these benefits (room and board) be factored into her salary, or it the minimum wage still required?
If not part of salary, may I take a tax deduction for providing these benefits to my employee?
Where can I find more information so I do this legally. I've heard it's very complicated to handle the taxes by oneself.
Thanks!What is the name of your state (only U.S. law)?
It is also very complicated to manage the human resource compliance issues, etc. etc...

My advice would be to consider hiring such domestic staff by using an agency to ensure everything is on the up and up and legal. Also it is screened for background / drugs / paedo etc...

Lastly - It is not easy to find such help who are legal residents and competent to raise your children who are actually willing to work for the such scant wages and hours (15 hours X minimum wage - board = peanuts) . I believe that you are either overvaluing the value of such a housing arrangement and / or undervaluing the labor involved in competent child care.
 

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