Year-End Tax Planning for Household Employers

Dec 3, 2014 | Household Payroll & Taxes, Tax & Wage Laws

The end of 2014 is quickly approaching, so it’s important that everything is in order to ensure there are no surprises when it comes time to pay nanny taxes next year. Year-end tax planning isn’t something to put off or ignore. It’s important to look at your finances and think about any changes you will be making for the rest of 2014 and into early 2015. Some things to consider include:

Adding/decreasing your employee’s hours during the holiday season
Awarding a year-end bonus
Adjusting salary for 2015
Making note of any minimum wage increases in your state
Vacation pay for the holiday season

Also note that for 2015, the domestic employee coverage threshold amount will remain the same as this year – $1,900; this means that you are required to pay taxes if you pay a nanny at least $1,900 for the year. Make sure you keep accurate records of any changes you make, along with any changes to any federal or state tax and wage laws.

Please download our helpful “Year-End Checklist for Household Employers,” and contact GTM Payroll Services at (800) 929-9213 with any questions you might have.