Why Paying Nanny Taxes Matters
As a responsible employer, paying your nanny’s taxes is essential. It offers significant benefits for both you and your nanny, all of which outweigh the cost of paying illegally.
As a responsible employer, paying your nanny’s taxes is essential. It offers significant benefits for both you and your nanny, all of which outweigh the cost of paying illegally.
As a family that has hired a nanny, in-home senior caregiver, or other household employees, you are now considered an employer and should follow guidelines for retaining employment, tax, and payroll records.
Ensuring legal compliance when employing a nanny is crucial. Learn about essential tax documents like W-2s, W-3s, and Schedule H. Discover potential consequences of non-compliance and how to avoid them.
Our guide breaks down the essential steps to pay your nanny legally. From determining pay rates and classifying your nanny as an employee to understanding tax obligations and workers’ compensation, we’ve got you covered. Ensure a smooth and compliant employment relationship with your nanny.
The Social Security Administration released next year’s Employment Coverage Threshold for household employees, commonly called the “nanny tax threshold.” If a household employee earns more than this threshold, the family and the employee must pay Social Security and Medicare taxes.
Hiring a nanny will be one of the most important decisions you’ll make as a parent. Even though you may not have a lot of time to put into the hiring process, don’t overlook these 7 tasks that could get skipped.