After several interviews you finally find the perfect nanny. She gets along well with your children, has a flexible schedule that’s a match for your hectic one, and her references are glowing. One catch – when you discuss salary, she asks to be paid “under the table.” Here are a few reasons why you might be tempted to comply with her request and pay her “under the table”: There would be no need to pay the ‘Nanny Tax’, allowing you to offer a higher salary. Your sought-after nanny may have received a similar offer from someone else who will [...]
Did you know that if you have a household employee, in order to do things legitimately, you have to have a payroll system in place to pay tax obligations if you pay your employee more than $2,100 a year (as of 2019.) Having a payroll company do it for you, however, can add on thousands to your costs. But with a little elbow grease and patience, you can actually do this yourself with DIY payroll management software. And that is exactly what Nannypay is – a secure and cost-effective payroll software for calculating taxes for your household employees. If you’re [...]
How To Pay Your Nanny Taxes? Most families are not tax specialists. So when they first hire a household caregiver or nanny, fulfilling the tax requirements of the IRS can seem at first a bit overwhelming. Nanny payroll services may seem an attractive option at first – until you consider the overall cost. With setup fees and other costs, a payroll service could cost you more than $1,000 the first year alone. But with just a little bit of initial effort, you can learn how to do it yourself, and NannyPay software is here to help. For over twenty years, [...]
Here at Essentia we are all software geeks but when we heard about a customer who asked his spouse if she would like a copy of NannyPay for Christmas, we nearly fell off our chairs. His wife told him, “Don’t you ever, ever consider giving me software as a gift! Go put some thought into it! Remember when you bought me a calculator for my birthday. That didn’t go well, did it?” Whoa, Ok, we know thinking of the right gift is not easy but maybe your spouse has a point. A copy of NannyPay is not the most [...]
With the ease and availability of installing nanny cameras, it’s easy to say “why not” to installing them when you have a nanny in the house. There are a number of things to consider when doing so. Know the Laws While installing and recording videos in your home is legal in many states, the legality of audio recordings is more limited. Know the laws in your state before you install a Nanny Cam, and be sure not to install them in sensitive areas such as bathrooms where recording would raise significant privacy concerns. Know Why Consider why are you installing [...]
With so many parents hiring summer babysitters and nannies we want everyone to be sure they are up to date with payroll taxes. Save this summer on NannyPay for NEW customers using Coupon Code: CHILL25 to save $25 OFF. Coupon code valid for new customers through 8.31.18 and not valid for cash value, previous purchases or renewals. Save money and time with NannyPay!
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 [...]
When you first employ a nanny, you might at first be confused about the process of paying them legally, and if you called for a quote from a nanny payroll service, you will probably be surprised at the cost. But you have a number of choices to handle payroll, and they differ in various ways, such as payment means, time investment, cost of service, etc. Let’s consider the nanny payroll alternatives in a bit more detail. Pay Under the Table This is a poor choice for your nanny and illegal for you as the employer. For nannies, being paid “under [...]
It always seems to come around quicker than we expect each year and each year we say we are going to get organized. If you aren’t one of those that is already organized and ready for tax time here are a few family tips. Make a List Make a list of all of the documents that you will need to prepare for your taxes so you can check them off. Create a Folder Create a folder for storing all of your documents in one place so as you have them they do not get misplaced. Go Digital You are supposed [...]
We were happy to be featured in a May 2017 article in US News & World Report, "3 Payment Platforms for Parents."