Paying a nanny “on the books,” as opposed to “under the table” simply means you are doing things the right way and treating your nanny as a professional caregiver. You are paying them according to applicable tax, wage, and labor laws and withholding and remitting taxes appropriately. Here’s how.
With complex tax, wage, and labor laws, there is a lot that goes into paying your nanny. Rather than take on the stress and burden of paying your nanny legally, not to mention the time involved, many families sign up with a nanny payroll service. Here’s how to find the best nanny payroll services to make sure your nanny is paid legally and compliance is taken care of.
Discover the key aspects of household staffing including the essentials of hiring domestic help and the importance of a household employee payroll service to manage household staff.
What can you expect to pay in taxes when you hire a nanny? While all household employers pay taxes to the IRS, your total nanny tax obligation will depend on your state. We break it all down so you can understand how much you may pay in nanny taxes.
What are the costs when hiring a live-in nanny? Check out our complete guide to understanding live-in nanny costs including pay and overtime, room and board, taxes, benefits, and insurance.
When paying your nanny, you can pay them in arrears or current. Here are the differences between the two methods and why paying in arrears may work best for your family.
You have a few options to pay your nanny taxes. While the main point is to actually remit the proper amounts, some methods may be more advantageous for you to avoid underpayment tax penalties. Here is the best way to pay your nanny taxes.
For a few reasons, like qualifying for a health insurance subsidy or taking home more money, a nanny may want to be paid half on and half off the books. This may seem like a reasonable compromise especially if you like the caregiver. Plus, you save on taxes too. Everyone is happy. Right? Here are four key reasons why this is a bad idea even if well-intentioned.
Not correctly paying a nanny for overtime hours – or ignoring OT hours altogether – is a common way families violate wage laws. Here is everything you need to know to pay your nanny overtime the right way.
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