Nanny Tax & Payroll Updates! HomeWork Solutions

Governor Ed Rendell signed a bill that calls for Pennsylvania's minimum wage to rise to $6.25 an hour on Jan. 1, 2007, then to $7.15 an hour on July 1, 2007.

Nanny employers need to make note of a particular exemption for small business operators. The increase will take effect more slowly for employers with the equivalent of 10 or fewer full-time employees (most nanny and household employers). Those employers that qualify will pay $5.65 an hour beginning Jan. 1, 2007; $6.65 beginning July 1, 2007; and $7.15 on July 1, 2008.

Twenty two states now have minimum wage rates that are in excess of the Federal Minimum Wage, set at $5.15 in 1997. When the state rate exceeds the Federal rate, the state rate prevails.

HomeWork Solutions has developed various online free calculator tools for nanny employers to help them determine the effective hourly rate they are paying their household worker, and test this rate against their state's minimum wage rate.
HomeWork Solutions' Tax and Wage Calculators