There is plenty of advice out there about how to hire a nanny. But what do you do after you actually hire one? Here are some important steps you need to take to ensure a successful and professional relationship with your caregiver.
When you hire someone to work in your home, you become an employer. And with that designation comes employment tax responsibilities, which are commonly called “nanny taxes.” So how do you pay nanny taxes and make sure everything is correct? There are a few ways to tackle this including doing it yourself. If you’re ready to take this on, here are 7 steps to paying nanny taxes yourself.
If your nanny drives their car while on the job, it’s a best practice to reimburse them for gas and mileage. Here’s how to do it the right way and avoid any additional taxes for extra compensation.
What happens if your employee provides an Individual Taxpayer Identification Number instead of a Social Security Number? While an ITIN and an SSN may seem similar, they are vastly different. Employing a nanny who has an ITIN and not an SSN can get you in some trouble.
The benefits of legally paying your nanny ensures fairness and protects both parties. It’s a win-win situation for both you and your nanny. You’ll gain peace of mind, reduce legal risks, and potentially qualify for tax breaks. Your nanny will benefit from financial security, social security contributions, and a professional working relationship.
The awesome nanny you plan to hire wants to be paid off the books. You know the risks but do you take a chance and go along with your nanny? Nannies, however, often don’t see the bigger picture when it comes to being paid legally and what benefits (both immediate and long-term) they may be missing. Here’s what to say to get them on board with legal pay.
Get your free: Complete Guide to Household Payroll
Download our free guide and find out everything you need to know about paying your employee legally and filing your taxes.
.
800-929-9213