nanny tax

noun

1. the portion of Social Security and Medicare taxes paid by the employer of a nanny, gardener, or other household worker.

Word History and Origins

Origin of nanny tax¹

First recorded in 1990–95

Example Sentences

“It’s people who don’t have a lot of time, make a lot of money, don’t want the ‘nanny tax’ thing and want the job done right.”

From Washington Post

Some people focus, incorrectly, on the worker’s title, or whether they are full time or part time, said Laura Weiland, president of the Nanny Tax Company, in Park Ridge, Ill.: “In their heads, they say, ‘I just have a babysitter; she’s not a nanny.’”

From New York Times

It’s helpful to get over the notion that, although its short hand is “nanny tax,” this does not only pertain to a full time Mary Poppins, but, perhaps, to the neighborhood Kristy, Mary Anne, Claudia and Stacey too.

From Forbes

If a person cares for the child in your home, you could have "nanny tax" issues.

From Wall Street Journal

Depending on your income, you can deduct a percentage of what you pay for child care, up to a few thousand dollars per kid. Of course, keep in mind that if you deduct the cost of an in-home nanny or babysitter — even if it’s just the neighbor’s teenaged kid — you’ll be expected to pay the so-called “nanny tax” during the time you employ them.

From Time