{"id":39538,"date":"2024-12-19T12:23:48","date_gmt":"2024-12-19T17:23:48","guid":{"rendered":"https:\/\/gtm.com\/household\/?p=39538"},"modified":"2025-02-24T16:05:02","modified_gmt":"2025-02-24T21:05:02","slug":"nanny-taxes-matter-2","status":"publish","type":"post","link":"https:\/\/gtm.com\/household\/nanny-taxes-matter-2\/","title":{"rendered":"Why Paying Nanny Taxes Matters"},"content":{"rendered":"<p><a href=\"https:\/\/gtm.com\/household\/nanny-taxes-matter\/pexels-tatianasyrikova-3968133-1\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-39543 size-full\" src=\"https:\/\/gtm.com\/household\/wp-content\/uploads\/2024\/12\/pexels-tatianasyrikova-3968133-1-1.jpg\" alt=\"\" width=\"1920\" height=\"1280\" srcset=\"https:\/\/gtm.com\/household\/wp-content\/uploads\/2024\/12\/pexels-tatianasyrikova-3968133-1-1.jpg 1920w, https:\/\/gtm.com\/household\/wp-content\/uploads\/2024\/12\/pexels-tatianasyrikova-3968133-1-1-1280x853.jpg 1280w, https:\/\/gtm.com\/household\/wp-content\/uploads\/2024\/12\/pexels-tatianasyrikova-3968133-1-1-980x653.jpg 980w, https:\/\/gtm.com\/household\/wp-content\/uploads\/2024\/12\/pexels-tatianasyrikova-3968133-1-1-480x320.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) and (max-width: 1280px) 1280px, (min-width: 1281px) 1920px, 100vw\" \/><\/a><br \/>\n<audio controls=\"controls\"><source src=\"https:\/\/gtm.com\/household\/wp-content\/uploads\/2025\/01\/Why-Paying-Nanny-Taxes-Matters.mp3\" type=\"audio\/mpeg\" \/>Your browser does not support the audio element.<\/audio><\/p>\n<p>The <a href=\"https:\/\/www.ssa.gov\/oact\/cola\/CovThresh.html\">Employment Coverage Threshold<\/a> for household employees, or \u201cthe nanny tax threshold,\u201d for 2025 is $2,800. If you pay more than that amount to your nanny or any other household employee during the calendar year, you must pay employment taxes.<\/p>\n<p>As a responsible employer, paying your nanny&#8217;s taxes is essential. It offers significant benefits for both you and your nanny, all of which outweigh the cost of paying illegally.<\/p>\n<h2>Benefits for Your Nanny<\/h2>\n<ul>\n<li>Financial Security: Ensures your nanny has a documented work history, allowing them to qualify for benefits like unemployment insurance, Social Security, and Medicare.<\/li>\n<li>Provides Credit History: A strong work history with tax records can help your nanny build credit and qualify for loans, mortgages, and rental agreements.<\/li>\n<\/ul>\n<h2>Benefits for You<\/h2>\n<ul>\n<li>Peace of Mind: Avoid potential legal issues and IRS penalties by complying with tax laws. You also protect yourself from potential wage disputes by having everything documented.<\/li>\n<li>Stronger Employer-Employee Relationship: Paying legally means you generally will attract more qualified candidates. Nannies who view childcare as their chosen career want to be treated like professionals and enjoy the same benefits of legal pay as those in the traditional workforce. It also shows your commitment to fair labor practices and can lead to a more positive working relationship.<\/li>\n<\/ul>\n<h2>How Much Do Nanny Taxes Cost?<\/h2>\n<p>Nanny taxes typically add about 9-12% to your nanny&#8217;s gross wages, but this can vary by state. Factors like Social Security (6.2%), Medicare (1.45%), federal unemployment, and specific state unemployment taxes and workers\u2019 compensation requirements contribute to this total. Use our <a href=\"https:\/\/secure.gtm.com\/Household\/nanny-tax-calculator.aspx\">nanny tax calculator<\/a> to estimate costs for your specific situation.<\/p>\n<h2>How to Reduce Your Nanny Taxes<\/h2>\n<p>There are also ways to reduce the cost of nanny taxes, including a Dependent Care FSA and the Child and Dependent Care Tax Credit. Read more <a href=\"https:\/\/gtm.com\/household\/dependent-care-fsa\/\">here.<\/a><\/p>\n<h2>Need More Information?<\/h2>\n<p>To get a complimentary, no-obligation consultation with a household employment expert, call (800) 929-9213.<\/p>\n<h2>Hiring a nanny?<\/h2>\n<p>Download Your Guide to Hiring a Nanny. In this guide, we lay out the steps on how to hire a nanny the right way and maintain a strong relationship with your employee.<br \/>\n<script src=\"\/\/app-abd.marketo.com\/js\/forms2\/js\/forms2.min.js\"><\/script><\/p>\n<form id=\"mktoForm_1783\"><\/form>\n<p><script>MktoForms2.loadForm(\"\/\/app-abd.marketo.com\", \"963-ZNS-159\", 1783);<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As a responsible employer, paying your nanny&#8217;s taxes is essential. It offers significant benefits for both you and your nanny, all of which outweigh the cost of paying illegally.<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[314,75],"tags":[161,177,239,90],"class_list":["post-39538","post","type-post","status-publish","format-standard","hentry","category-household-employee-management","category-household-payroll-taxes","tag-hiring-a-nanny","tag-nanny-pay","tag-nanny-tax-calculator","tag-nanny-taxes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why Paying Nanny Taxes Matters<\/title>\n<meta name=\"description\" content=\"Nanny taxes should always be paid. 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