If you run a business and employ household help, can you pay that employee through your company payroll? This is a common tax question that can affect your personal and company finances. The short answer is no – a household employee shouldn’t be paid by a corporate entity through their business payroll. Here’s why.
If your employee lives and works in different states, they may not be required to file taxes in both. Certain state have what is called a reciprocal agreement.
Part of the responsibilites of being a household employer is understanding nanny taxes – what they are and what to pay. Use this helpful guide to assist you in complying with nanny tax laws.
Families often ask for advice on handling different issues that arise when planning for summertime household employment, so let’s take a look at some of the most common concerns.
Although paying “off the books” gives the employee more income and saves families from the extra paperwork, it is illegal and can make you liable for unpaid taxes, interest, and penalties. Follow these 14 steps to nanny tax compliance to ensure you are following employment laws.
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