Is your Nanny Legally Able to Work for you? Can your household employee legally work for you? This issue is all too often overlooked but should be on of the first questions you ask a potential employee. It is unlawful to employ, or continue to employ, any person as a household employee who cannot legally work in the United States. When you hire a household employee to work for you, you are responsible for verifying that this person is legally eligible to work in the United States. Verification your Nanny can Legally work in the US You and your household employee must [...]

Why You Shouldn't Pay Your Nanny "Under the Table"? Although household employment tax laws certainly add an additional expense to your childcare budget, you really can’t afford not to comply with the law. Although some nannies may even ask to be paid “under the table”, a family that agrees to such an arrangement is taking significant legal and financial risks. In the event of an audit, you, as the household employer, will be ultimately responsible for all FICA and other employment taxes that are owed to the government on your nanny’s wages, even if you did not withhold the nanny’s [...]

NannyPay has Been Helping Families with Taxes for Almost Two Decades If you are a first-time household employer, you've probably already learned that finding the "right" nanny or other household employee is a difficult task. Although finding a trustworthy, competent household employee is your first priority, families who choose to hire their own household help will also need to understand the "nanny tax" laws, Social Security rules, and immigration regulations. Understanding the Nanny Tax Laws Are the NannyTax laws complicated? The surprising answer, is "No, not really". In our experience, most people who take the half hour or so to [...]

Keeping IRS Records of your Household Employees As a Household Employer, you must keep all your records on your household employee's income and employment taxes, including Social Security, Medicare, federal unemployment taxes, federal income tax withholding, and advance payment of earned income credit, for at least 4 years after the due date of the return or after the tax is paid, whichever is later. Information you Should Maintain as a Household Employer Your employer identification number; (EIN) Copies of returns you have filed; Dates and amounts of any deposits or payments you made; Each household employee's name, address, and Social [...]