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Do I need to provide medical benefits for my nanny or other household staff?

Posted on Oct 27, 2005

Medical benefits are a nice way to round out the compensation package and make your job that much more desirable. It is a tax benefit for both employer and employee as any payments made towards health insurance are not considered taxable wages. This means if you give a nanny/household employee $200 a month to use towards his/her insurance, neither your nor your employee have to pay taxes on the monthly stipend. Providing a monthly stipend towards insurance can lower the gross salary. Another important consideration in the medical benefits debate is that this person is taking care of your children and your home. They are a valued member of your family's team. There are a number of helpful websites for determining the cost of health care plans. LifeWise benefit plans for individuals and families are available statewide to permanent Washington state residents. Please visit their website to get a price quote, apply online and compare different plans on the site www.LifeWiseWA.com. Insurance.com, www.insurance.com/Health.aspx offers quotes for many different insurance products. In their health care section you can compare quotes from major national/regional insurance providers (Aetna, Group Health, Regence Blue Shield, LifeWise.

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