If you’re working as a Nanny, Family Assistant, Housekeeper, or other household employee, it’s essential to understand how your wages are calculated. One of the most common questions we hear at Town + Country Resources is: “What’s the difference between gross vs. net wages?”
Gross Wages vs. Net Wages: What’s the Difference?
At T+C, we always discuss job rates in gross wages to ensure transparency and consistency. But what does that mean for your take-home pay?
- Gross Wages: The total amount you earn before deductions, such as taxes, Social Security, and Medicare.
- Net Wages: The amount deposited into your bank account after all required deductions.
Since every household employee’s tax situation is unique, the exact amount deducted from your paycheck will depend on several factors. These factors include where you live and your tax withholdings. To estimate your net pay, you can use this payroll calculator.
Why Payroll Matters for Household Employees
The IRS requires that household employees be paid legally—meaning taxes must be withheld and reported. This process is called payroll, and while it may seem like it reduces your take-home pay, it provides essential protections and benefits.
What Payroll Means for You:
- Legal Protection – You’re covered by labor laws that ensure fair wages and workplace rights.
- Access to Benefits – You may qualify for paid sick leave and disability benefits if you’re injured and unable to work.
- Financial Security – Contributions to Social Security, Medicare, and unemployment benefits help secure your future.
- Better Financial Opportunities – Pay stubs from legal employment can help you qualify for loans, credit, and tax benefits.
Need Help with Payroll? We’ve Got You Covered!
If you have questions about payroll, tax deductions, or setting up legal pay, our team at Town + Country Resources is happy to guide you. We can also connect you with helpful resources like HomePay and ADP to ensure our candidates and clients have the best resources available.
Being paid legally protects your financial future and your rights as an employee—and we’re here to guide you every step of the way.
Have questions? Contact your T+C placement counselor for more information!
