FREQUENT QUESTIONS
- What are nanny taxes?
- Why should I pay nanny taxes?
- Who is required to pay nanny taxes?
- How much do nanny taxes cost you?
- How much do nanny taxes cost your employee?
- How can I save money by paying nanny taxes?
- How can the IRS catch me if I haven't paid nanny taxes?
- When do I pay nanny taxes?
- Am I required to withhold federal and state income taxes?
- What are unemployment taxes?
- What are the penalties involved with late filing of withholding taxes?
- Can I hire an illegal alien?
- Where do I get information about preparing nanny taxes myself?
How can the IRS catch me if I haven't paid nanny taxes?
YES. There are several ways you can be "caught" by the IRS. If:
- Your employee doesn't work out and you fire her, she may apply for unemployment benefits. If you haven't paid nanny taxes, the state unemployment office will fine and penalize you, and report you to the IRS.
- Your employee becomes disabled, cannot work and files for social security disability benefits. If you haven't paid nanny taxes, the Social Security Administration will impose back taxes, interest and penalties.
- Your employee files a tax return and includes the wages from your employment. If you have not provided a W-2 to the employee, the IRS will fine and penalize you for the back taxes.
- Your tax return does not include available tax credits (such as the Dependent Care Tax Credit or Flexible Spending Account) the IRS becomes suspicious.
- Your employee retires and applies for Social Security benefits.
There is no statute of limitations for failing to report and pay federal payroll taxes.
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