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Should I Give My Agency’s FEIN to My Clients?              What Nanny Agencies Need to Know During Tax Season

How Your W-4 Could Be Causing a Tax Bill (And How to Fix It!)

Tax season can be stressful, especially if you end up owing more than expected. Many nannies and other household employees find themselves with a surprise tax bill, often because of how income tax withholding is handled throughout the year.

Year-End Tax Forms for Nanny Employers: What You Need to Know

Did you employ a nanny or other household worker in 2024 and pay them $2,700 or more in wages? If so, congratulations—you’re officially a household employer with tax filing obligations in the eyes of the IRS! That means you will need to report your employees’ wages and pay employment taxes when you file your federal income tax return.

Do Nannies Picking Up an Occasional ‘Babysitting’ Job Need to Pay Taxes?

A Guide for Nannies Picking Up Side Jobs Babysitting is an essential service for parents who want to go on a date, attend a child-free event, or simply have some time to recharge. However, when tax season arrives, many caregivers wonder whether they need to pay taxes on those earnings. The answer depends on how much money changed hands and whether the temporary work meets the guidelines for self-employment.

How Do I Create a W-2 for My Nanny?

If you’ve hired a nanny, you’re responsible for handling their payroll and taxes correctly—and that includes issuing a W-2 at the end of the year. But a W-2 isn’t just a form you fill out in January; it’s the final step in a yearlong process of paying your nanny legally.

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