{"id":4926,"date":"2014-08-11T10:59:56","date_gmt":"2014-08-11T14:59:56","guid":{"rendered":"http:\/\/gtm.com\/household\/?p=4926"},"modified":"2016-02-24T14:55:54","modified_gmt":"2016-02-24T19:55:54","slug":"does-my-nanny-have-to-pay-taxes","status":"publish","type":"post","link":"https:\/\/gtm.com\/household\/does-my-nanny-have-to-pay-taxes\/","title":{"rendered":"Does My Nanny Have to Pay Taxes?"},"content":{"rendered":"

\"doesA nanny or other employee who works in your home is responsible for reporting and paying required payroll taxes. It is worth making sure that they are aware of their responsibilities at the start of employment, if they do not already know. As a nanny, or other household employee, there are four key taxes that they are liable for:<\/p>\n

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  1. Social Security (OASDI) at 6.2% (2014). If the household employee is getting paid $1,900 gross or more in 2014, they are required to withhold and pay Social Security.<\/li>\n
  2. Medicare at 1.45%. If the household employee is getting paid $1,900 gross or more in 2014, they are required to withhold and pay Medicare.<\/li>\n
  3. Federal income Tax not required to be withheld*<\/li>\n
  4. State income tax not required to be withheld*<\/li>\n<\/ol>\n

    *Federal and state income taxes are not required to be withheld unless agreed upon by the employer and the employee.<\/em><\/p>\n

    But this shouldn\u2019t be confused with not having to owe any Federal and State income taxes. A nanny may pay their own income taxes either at the end of the year or as an estimated payment to the IRS and\/or your state. Your must give your nanny a W2 form and a copy to the IRS indicating how much you have paid your employee and they must file that form with their personal tax return. More often than not, it\u2019s a good idea to withhold the income taxes from their pay, so come April 15th they are not short a significant amount of\u00a0income tax. By doing this they will then get a chance to get a refund when they file their own tax return.<\/p>\n

    Therefore, it is advantageous to withhold federal and state income taxes because it<\/p>\n

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