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Benefits Of Being Paid Legally

August 1, 2022

Do you understand the benefits and protection that comes with being paid legally? Some people don’t realize that being a nanny, is indeed, a real and professional job. Nannies shall receive legal pay. We encourage all our nannies and families rethink paying under the table for many reasons. A nanny is a household employee and not an independent contractor. Therefore, Nannies are required to receive a W-2 as 1099’s are for independent contractors and is illegal.

Listed below are 5 benefits to being paid legally! If you have any questions or concerns regarding legal pay, please contact us so we can further assist you.

Unemployment Benefits:
There are several benefits to receiving unemployment benefits, including:

  • You will receive a weekly check for a limited amount of time and may continue receiving it for up to 26 weeks based on state law.
  • The money is paid directly into your bank account or other approved financial institution. Your employer does not get this money; it goes directly to you and only you.
  • You can use those funds however you'd like—to pay bills; make a mortgage payment; buy groceries; save for retirement or education expenses (if eligible); pay down credit card debt—anything that helps put food on the table while you look for work again!

Income Verification
An employment verification letter, or proof of employment, is a form that verifies the income or salary earned by an employed individual. This type of verification letter is commonly used when someone seeks housing or is applying for a mortgage.

Workers Compensation
Workers’ compensation is a form of insurance that provides medical care and income replacement to employees who are injured on the job. It's important to note that workers comp is not required by law, but it is an added benefit of being paid legally. In some states, such as California, you can choose not to carry workers comp or other types of insurance (such as health insurance). However, if you choose not to carry these benefits then you will be personally responsible for any financial losses incurred due to injuries sustained during employment.

Paid Family Leave
Paid family leave is a benefit that all employees, regardless of gender, race, or union status can enjoy. All you must do is work for an employer who provides it. Not only does paid family leave benefit men and women equally – it's also available for both full-time and part-time employees (and those in between) as well as salaried and hourly workers alike.
Social Security
Social security is a government program that provides retirement income and disability benefits. Social security is a tax-funded, pay-as-you-go program that has been in place since 1935 and is not funded by personal savings or investments. Social security is often confused with the idea of saving for your own retirement, but this is not the case: taxes collected by social security are used to fund current retirees' benefits and pay current workers who are disabled. It's important to note that while you are contributing to social security every month through your paycheck deduction, these funds remain separate from your individual bank accounts until they reach age 65 when they can be accessed as part of your monthly benefit check.

There are many reasons why being paid under the table may seem like a good idea, but there are real financial and health benefits to not being paid under the table.

  • Increased tax burden
  • Increased health risks
  • Increased stress
  • Increased likelihood of being fired
  • Increased likelihood of being injured (and therefore needing healthcare) while working at your job
  • Increased likelihood of being taken advantage of by employers and customers (e.g., not getting your full pay or having to work longer hours than you were promised)

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Pacific Elite Nannies
9114 Adams Ave #631
Huntington Beach, CA 92646

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