CNM CNM Legal & Employment Standards for Nannies

Question 1

In the United States, household employees such as nannies are classified for tax purposes as:

Accepted Answer

Employees, not independent contractors, in most circumstances

Answer

Independent contractors since they work in a private home

Answer

Self-employed individuals responsible for all their own taxes

Answer

Exempt workers not subject to federal tax laws

Question 2

What is the 'nanny tax'?

Accepted Answer

Federal and state payroll taxes (Social Security, Medicare, unemployment) that families must pay when employing a household worker

Answer

A tax credit families receive for employing a nanny

Answer

A licensing fee paid by nannies to work legally in the US

Answer

A flat income tax rate applied exclusively to nanny earnings

Question 3

Under the Fair Labor Standards Act (FLSA), live-out nannies are generally entitled to:

Accepted Answer

Minimum wage and overtime pay at 1.5x for hours worked over 40 per week

Answer

A flat weekly salary with no overtime requirement

Answer

Overtime only if earning below poverty level

Answer

Minimum wage but no overtime protections

Question 4

What document must a family provide to a household employee upon hiring to comply with IRS requirements?

Accepted Answer

Form W-2 by January 31 of the following year

Answer

Form 1099 by February 15

Answer

Form I-9 only, with no additional IRS paperwork

Answer

A written employment contract filed with the IRS

Question 5

Form I-9 is required in nanny employment because it:

Accepted Answer

Verifies an employee's identity and legal authorization to work in the United States

Answer

Documents the nanny's educational credentials

Answer

Establishes the employment contract terms between nanny and family

Answer

Records the nanny's tax withholding preferences

Question 6

Which federal law prohibits employment discrimination based on race, color, religion, sex, or national origin in workplaces with 15 or more employees?

Accepted Answer

Title VII of the Civil Rights Act of 1964

Answer

The Fair Labor Standards Act

Answer

The Family and Medical Leave Act

Answer

The Americans with Disabilities Act