Nanny share - going rates, services for paying taxes and withholding
We are currently exploring the possibility of setting up a nanny share and talking to potential partner families. If you are in this situation, and can provide advice on any of the following, it would be much appreciated:
1) what are you paying for a two child nanny share, per child per hour? Please specify net or gross!
2) What do people do about reporting income to state and federal authorities and also about withholding? Do most people simply pay the nanny gross wages (and pay the govt payroll (employer side) taxes) and leave it to the nanny to pay income tax, SDI, etc.? Or is it more common practice for the employer to handle all of these things for the nanny?
3) what service, if any, do you use to calculate employer side tax, and various deductions from nanny wages? It looks like you can do this manually yourself, but it is fairly complicated. I have heard good things about Care.com, but is more expensive, and I've also read that Sure Payroll is very good but less expensive.
4) most of the information I've seen online concerns one household employer and one nanny. How do you handle all of this with two households paying one nanny's wages?
5) any other hot tips or "things you wish you'd known" before you started this process would be much appreciated!