Hiring household employees comes with responsibilities and legal obligations. Understand the essential aspects of hiring household employees, employment taxes, and how to ensure a smooth and lawful employment relationship.
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.
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.
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.
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