Be Sure to File Your Employment Tax Returns, Or Else
Be Sure Uncle Sam Gets His Cut Most times, household employers run afoul of the law by paying their household help “under the table” and not withholding the proper employment taxes. But by paying your nanny legally, and withholding taxes from her pay, creates a trusting relationship between you and the government with regard to those withheld taxes. If you withhold employment taxes and then fail to pay those taxes over to the government, you likewise face substantial liability as a “responsible person” under federal (and most states) tax laws. In US v. Hastings (W.D. Mo. 2015), a bookkeeper [...]