Understand The Nanny Tax
Implications of 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 [...]