Do I owe federal taxes?

FEDERAL TAX WITHHOLDINGS FOR A NANNY If you are employing a nanny or caregiver and pay them $2000 or more in a calendar year, you are by definition a “household employer”.  When you hit this threshold there is no option to whether or not you can pay them under the table.  Which means, by law, you must pay taxes - period! So the real question becomes, how do you go about properly paying your employee and your taxes?  Required Nanny Tax Withholdings As an employer, you are required to withhold Social Security and Medicare taxes. Depending on the state you [...]