Breedlove & Associates is the nation’s leader in household employment tax and payroll
services. Their comprehensive and affordable “nanny tax” service has eliminated
paperwork, minimized legal risk, maximized tax breaks – and generally made life easier for
more than 15,000 families across the U.S. since 1992.
services. Their comprehensive and affordable “nanny tax” service has eliminated
paperwork, minimized legal risk, maximized tax breaks – and generally made life easier for
more than 15,000 families across the U.S. since 1992.
The Benefits of Being Paid Legally
Legal Pay Pays Off: Why Household Employees Should Ask to Be Paid “On the Books”
A Complimentary Resource from © 2007-2009 Breedlove & Associates
Breedlove & Associates
Why Being Legal is Being Smart
The benefits of being legal are numerous, and you really can’t afford to be without them. As a professional, you should expect nothing less.
Once you take a look at the benefits, you’ll agree that being legal is the way to go!
• Employment History. Being legal creates an employment history that is critical to daily life. If your employment is not documented, it
is as if you do not work. An employment history is required for a car loan, a mortgage, a student loan, a credit card application, a health
insurance application, an auto insurance application, future job applications, and the list goes on.
A Real Life Example: Jill earns $2,000 per month as a nanny but is paid illegally. She and her husband applied for a mortgage on their first
home. They did not qualify without her income. In order to qualify, Jill had to put her salary “on the books” and wait 6 months before
submitting a new loan application.
• Unemployment Benefits. When paid legally, you are entitled to receive approximately 50% of your salary for up to six months if you
lose your job due to no fault of your own. This benefit is free to you, as your employer pays the cost of the program.
A Real Life Example: Jane lost her $500 per week job as a nanny when her family had a job-related move across the country. Jane
receives $250 per week in unemployment insurance benefits while she looks for a new job.
• Social Security/Medicare Benefits. For many, taking advantage of these benefits is years away, but consider these tax withholdings as
a good investment.
A Real Life Example: Barb earns approximately $30,000 per year. During her career she contributes about $40,000 to Social Security. At
age 65, she will receive approximately $175,000 in Social Security benefits during retirement, assuming she lives until age 85. That’s almost
5 times the amount she contributed during her working years! That’s a tremendous investment.
• Disability Benefits. In many states, you pay State Disability Insurance as a part of the taxes withheld from your pay. If you must take
time away from work due to non-occupational illness or maternity leave, you are entitled to benefits while you are away from work.
A Real Life Example: Maria is a full-time nanny and is expecting a baby. Maria is planning to take several weeks of maternity leave. Her
employer plans to hire a temporary nanny while she is away and cannot afford to pay Maria during her leave. Maria plans to file for disability
benefits to assist her during maternity leave.
Negotiating Salary
Negotiating salary “on the books” can have a positive result, if you are prepared. Your employers are professionals and are used to
negotiating before-tax salaries, not take-home salaries. Be prepared to negotiate by customizing your own payroll scenario at www.
breedlove-online.com/payroll-calculator. Here’s an example:
Gross Salary: ($26,000/yr) $1,000/bi-wkly
Social Security & Medicare ($ 76.50)
Federal Income Tax ($ 82.50)
State Income Tax ($ 25.38)
Total Withholding ($184.38)* approx. 20% of gross salary
NET PAY $815.62
*Depending on your salary, filing status and the state you live in, your total withholdings may be slightly higher or lower than 20% of gross
salary, but 20% is a good rough estimate.
Note: Your employer has tax responsibilities also, but it’s very common for an employer’s tax savings to exceed the employer’s share of the
taxes – actually saving the family money by being legal! It’s a win – win!
About Breedlove & Associates
At Breedlove & Associates, we make the household payroll and tax compliance process easy and affordable for busy families. Formed in
1992 -- by household employers for household employers -- we're proud to be the nation's leading provider of payroll and tax services for
household employers, having served more than 14,000 families across the country and processed more than $1 Billion in household payroll.
Being legal is not only the law, it also provides great benefits — which every professional deserves. So don’t think of it as a tax obligation;
think of it as an investment in your financial future.
For more information, visit www.breedlove-online.com or call us at 1-888-273-3356.
We’re here to help.
NannyMall, LLC
Copyrighted: 2009
NannyMall, LLC
121 Civic Center Drive
Ste 212
Lake St. Louis, MO 63367
Legal Pay Pays Off: Why Household Employees Should Ask to Be Paid “On the Books”
A Complimentary Resource from © 2007-2009 Breedlove & Associates
Breedlove & Associates
Why Being Legal is Being Smart
The benefits of being legal are numerous, and you really can’t afford to be without them. As a professional, you should expect nothing less.
Once you take a look at the benefits, you’ll agree that being legal is the way to go!
• Employment History. Being legal creates an employment history that is critical to daily life. If your employment is not documented, it
is as if you do not work. An employment history is required for a car loan, a mortgage, a student loan, a credit card application, a health
insurance application, an auto insurance application, future job applications, and the list goes on.
A Real Life Example: Jill earns $2,000 per month as a nanny but is paid illegally. She and her husband applied for a mortgage on their first
home. They did not qualify without her income. In order to qualify, Jill had to put her salary “on the books” and wait 6 months before
submitting a new loan application.
• Unemployment Benefits. When paid legally, you are entitled to receive approximately 50% of your salary for up to six months if you
lose your job due to no fault of your own. This benefit is free to you, as your employer pays the cost of the program.
A Real Life Example: Jane lost her $500 per week job as a nanny when her family had a job-related move across the country. Jane
receives $250 per week in unemployment insurance benefits while she looks for a new job.
• Social Security/Medicare Benefits. For many, taking advantage of these benefits is years away, but consider these tax withholdings as
a good investment.
A Real Life Example: Barb earns approximately $30,000 per year. During her career she contributes about $40,000 to Social Security. At
age 65, she will receive approximately $175,000 in Social Security benefits during retirement, assuming she lives until age 85. That’s almost
5 times the amount she contributed during her working years! That’s a tremendous investment.
• Disability Benefits. In many states, you pay State Disability Insurance as a part of the taxes withheld from your pay. If you must take
time away from work due to non-occupational illness or maternity leave, you are entitled to benefits while you are away from work.
A Real Life Example: Maria is a full-time nanny and is expecting a baby. Maria is planning to take several weeks of maternity leave. Her
employer plans to hire a temporary nanny while she is away and cannot afford to pay Maria during her leave. Maria plans to file for disability
benefits to assist her during maternity leave.
Negotiating Salary
Negotiating salary “on the books” can have a positive result, if you are prepared. Your employers are professionals and are used to
negotiating before-tax salaries, not take-home salaries. Be prepared to negotiate by customizing your own payroll scenario at www.
breedlove-online.com/payroll-calculator. Here’s an example:
Gross Salary: ($26,000/yr) $1,000/bi-wkly
Social Security & Medicare ($ 76.50)
Federal Income Tax ($ 82.50)
State Income Tax ($ 25.38)
Total Withholding ($184.38)* approx. 20% of gross salary
NET PAY $815.62
*Depending on your salary, filing status and the state you live in, your total withholdings may be slightly higher or lower than 20% of gross
salary, but 20% is a good rough estimate.
Note: Your employer has tax responsibilities also, but it’s very common for an employer’s tax savings to exceed the employer’s share of the
taxes – actually saving the family money by being legal! It’s a win – win!
About Breedlove & Associates
At Breedlove & Associates, we make the household payroll and tax compliance process easy and affordable for busy families. Formed in
1992 -- by household employers for household employers -- we're proud to be the nation's leading provider of payroll and tax services for
household employers, having served more than 14,000 families across the country and processed more than $1 Billion in household payroll.
Being legal is not only the law, it also provides great benefits — which every professional deserves. So don’t think of it as a tax obligation;
think of it as an investment in your financial future.
For more information, visit www.breedlove-online.com or call us at 1-888-273-3356.
We’re here to help.
NannyMall, LLC
Copyrighted: 2009
NannyMall, LLC
121 Civic Center Drive
Ste 212
Lake St. Louis, MO 63367
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