Would Taxing Au Pairs Help Unemployed American Nannies Find Jobs?
This year it was rumored that Congress was considering legislation that would require au pairs and host families pay a 7.65% FICA tax. I have been unable to track down that bill so if you can find that legislation please share that link in comment section below this article.
But, it's an interesting concept. If in fact au pairs and their host families were taxed approximately $1,500 per year would that be enough financial burden to convince the parents to hire an American citizen to work as a nanny in their home rather than an au pair in the cultural exchange program?
In the Be the Best Nanny Newsletter monthly poll, the majority of nannies that have already taken the survey have answered that au pairs are indeed filling much needed nanny jobs.
For those who feel au pairs are taking away jobs that could be filled by unemployed American citizens this legislation might help unemployed nannies looking for jobs. But, those who oppose such legislation make the point that the au pairs won't be here to benefit from the taxes they will be required to pay.
In Favor of Taxing Au Pairs: In a difficult economy when unemployed nannies are struggling to find great nanny jobs, au pairs are working in positions that otherwise might be filled by American citizens.
Those Who Oppose Taxing of Au Pairs: If the au pair is only working and visiting America for one or two years they will not have the opportunity to take advantage of the Social Security and Medicare benefits they would be required to fund.
Do you think au pairs working in America should pay FICA taxes?