- 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?
Am I required to pay nanny taxes?
There are a couple of liability thresholds for nanny taxes. If you pay anyone working in or around your home $2,400 or more in a year, or if you pay $1,000 in a quarter you are considered a household employer by the IRS.
If you pay an employee working in your home $2,400 or more in a year, both you and the employee must pay Social Security and Medicare taxes.
If you pay employees working in your home $1,000 or more in a calendar quarter, you must pay federal and state unemployment taxes (some states like New York have a lower threshold for unemployment tax liability).
These taxes don’t just apply to nannies. Any workers in your home who follow your instructions for performing their duties are covered by these laws. In addition to nannies, it can include babysitters, caretakers, house cleaning workers, domestic workers, drivers, health aides, housekeepers, maids, butlers, private nurses, and yard workers.
See When do I pay my nanny taxes? for more information.
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