This is a reminder that the nanny’s (employee’s) Social Security Tax Rate is reduced to 4.2% for 2011. According to Internal Revene Service guidance, all employers must be making correct payroll tax deductions no later than January 31, 2011 and they must make refunds to the employee of any over-collected Social Security Taxes on wages paid in 2011 by that date.
The HomeWork Solutions’ popular Nanny Tax Calculator is fully updated for all 2011 tax rates.
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