FAQ's
- What are nanny taxes?
- What are the nanny tax deadlines?
- Why should I pay nanny taxes?
- Am I required to pay nanny taxes?
- How much do nanny taxes cost the employer?
- How do I know how much to pay my nanny?
- How can I save money by paying nanny taxes?
- Can the IRS catch me if I haven’t paid nanny taxes?
- When do I pay my nanny taxes?
- Am I required to withhold federal and state income taxes?
- What are unemployment taxes?
- What are the penalties if I file withholding taxes late?
- Do I have to pay my employee overtime?
- I live in New York, do I have to pay my employee each week?
- I have a nanny on a trial basis. When do I have to start paying taxes?
- Can I hire an illegal alien?
- I’m in a nanny share, how do the taxes work?
- I am a nanny, how do I pay my taxes?
- Is Your Household Worker an Employee?
- Why Isn’t My Household Worker an Independent Contractor?
- Why Can’t I Hire My Nanny as an Independent Contractor?
- What Does the Employer Need to do to Pay Nanny Taxes?
- What Do Nannies Need to Provide to Their Family?
- What Are the Risks of Paying Your Nanny “Under the Table”?
- How Much Work Does It Take to Correctly Administer Nanny Taxes?
- What Forms and Payment are Needed to Comply with Nanny Tax Law?
Why Can’t I Hire My Nanny as an Independent Contractor?
Because it is illegal! The federal government is cracking down on misclassification of employees. It may seem easier to have your nanny act as an independent contractor but your incorrect filing may be considered tax evasion by the IRS.
It will also be worse financially for your nanny to file as an independent contractor. She will end up paying more taxes because she will be required to pay self-employment taxes. If she hasn’t been keeping up with those additional taxes all year, she could end up owing a lot of extra money when she files her income tax returns. Also, she will not be eligible for certain government benefits such as unemployment if she were to lose her job.
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