The end of 2015 is only about 2 weeks away, so it’s important that everything is in order to ensure there are no surprises when it comes time to pay your nanny taxes next year. We recommend not putting off or ignoring your 2015 year end tax planning. It’s important to look at your finances and think about any changes you will be making for the rest of this year and into early 2016. Some things to consider include:
- Adding/decreasing your employee’s hours during the holiday season
- Awarding a year-end bonus
- Adjusting salary for 2016
- Making note of any minimum wage increases in your state
- Vacation pay for the holiday season
Also note that for 2016, the domestic employee coverage threshold amount will increase to $2,000, up from $1,900 this year; this means that you are required to pay taxes if you pay a nanny at least $2,000 for the year. Make sure you keep accurate records of any changes you make, along with any changes to any federal or state tax and wage laws.
Please contact GTM’s Household Employment Experts at (888) 432-7972 with any questions you might have.
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