Tax Reminders

­

Nanny Tax: Know The Facts

Tax season is here! In this article, you’ll find a quick checklist of things you need to know about about filing your nanny taxes the right way. First, let’s be frank.  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 long run, if you fail to pay your nanny legally, and get caught, it can cost you [...]

By |March 4th, 2019|Tax Reminders|0 Comments

Tax Time: What You Need to Know About Nanny Taxes

If you employ a nanny, eldercare giver, private nurse or other household employee, you likely are required to pay the so-called “Nanny Tax”.  According to the IRS, if you employ someone to do work in or around your home, he or she will be regarded as your household employee if you (the employer) control: The type of work the person performs, and How that person performs his job (the daily instructions you give) If the worker is your employee, and you pay them over a specific wage amount, you are required by federal law to withhold and pay Medicare and [...]

By |January 21st, 2019|Tax Reminders|0 Comments

Understand The Nanny Tax

The “nanny tax” is  a combination of federal payroll taxes that you are required to pay if you hire a household helper, such as a nanny, maid, babysitter, or elder caregiver, and pay them in excess of a certain threshold amount in a tax year. The IRS considers a household helper who works in your home as an employee, and not an independent contractor, which is the reason why the nanny tax needs to be paid by the family that employs household help. Nanny Tax Requirements A person or family that hires a household helper is required to pay the nanny [...]

By |October 17th, 2018|Tax Reminders|0 Comments

Tax Time Organization

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 [...]

By |March 26th, 2018|NannyPay, Tax Reminders, Tips|0 Comments

Reminder: 1/31/17 Deadline for W-3 with SSA

REMINDER: January 31st is the new deadline to file form W-3 with the SSA. A tax law enacted by Congress in December of 2015 includes a new requirement for employers this year. All employers are now required to file their 2016 Form W-3, with copies of Form W-2, with the Social Security Administration (SSA) by January 31, 2017. In the past, employers typically had until the end of February, if filing on paper, or the end of March, if filing electronically, to submit their copies of these forms to the federal government. This new law now makes the deadlines to [...]

By |January 29th, 2017|Tax Reminders|0 Comments

Nanny Tax Threshold for 2017

If a taxpayer pays above a certain amount to a person that works in their home, they will owe the so-called "Nanny Tax." For 2017, the domestic employee coverage threshold, or the amount at which the "Nanny Tax" will kick in, is $2,000, which is the same as the 2016 threshold. If you pay the employee less than $2,000 in cash wages in 2016, none of the wages you pay the employee are Social Security and Medicare wages, and neither you nor your employee will owe Social Security or Medicare tax.

By |November 27th, 2016|NannyPay, Tax Reminders|0 Comments

Can I Legally Pay My Nanny a Salary?

Traditionally, an employee who is paid a “salary” instead of an hourly wage is an “exempt” employee under the Federal Fair Labor Standards Act (FLSA), meaning that this employee is not eligible for overtime pay required by that law. Nannies, housekeepers and most domestic employees who work in your home do not qualify as “exempt”, meaning you must pay those employees at least the prevailing federal minimum hourly wage rate and one and one-half times their normal hourly rate for all hours worked in one week over 40 hours. So, can you legally pay your nanny a salary? The answer [...]

By |November 15th, 2016|NannyPay, Tax Reminders, Tips|0 Comments

Nanny Share Arrangements and the New Overtime Rules

POST UPDATE: Since this was first posted on November 8th, at the end of November, a Texas federal judge granted a preliminary injunction against the new OT threshold level, so the new threshold did NOT go into effect on December 1st. While this did not go into effect it is still the law to pay your nanny overtime for any hours over 40 a week. Effective December 1, 2016, the Department of Labor (DOL)’s new regulations regarding when an employee may be considered “exempt” (not eligible for overtime) under the Fair Labor Standards Act (FLSA) take effect. These new regulations [...]

By |November 8th, 2016|Tax Reminders, Tips|0 Comments

Is Your Nanny an Employee or Independent Contractor? You Can Both Ask the IRS

Is that nanny you just hired an employee or independent contractor? The answer has significant tax implications for both the family and nanny, because an employer is obligated to pay employment taxes for an employee, and may also have to provide workers compensation, unemployment or disability insurance for employees as well, but does not have to pay these taxes or benefits to independent contractors. Many nannies start work for a family with taxes the furthest thing from their mind. But then the nanny is surprised to receive a Form 1099-MISC from their family at the end of the year, instead [...]

By |July 21st, 2016|Hiring, NannyPay, Tax Reminders|0 Comments

Uber Sued in Nationwide Class Action & Why This Matters to Nannies

Just after settling a similar lawsuit in California and Massachusetts for approximately $100 Million, Uber Technologies, the increasingly popular ride-sharing company, has been sued yet again, this time in a nationwide class action, that claims the company illegally classified drivers as independent contractors instead of as employees, and denied them overtime wages required to be paid to employees under the Fair Labor Standards Act (FLSA). Uber’s competing service, Lyft, has recently increased its settlement offer to $27 Million in a similar case, also filed in California. Household employers take note. Although nannies and other in-home help are almost never properly [...]

By |July 13th, 2016|NannyPay, Tax Reminders, Tips|0 Comments