Knowledge Center

Nanny Employers

• Benefits of Outsourcing Nanny Payroll & Taxes

  Nanny payroll services are convenient and essential for many families. If your family utilizes nanny services, it’s important to understand nanny payroll and taxes. Some families wonder why they should bother involving the government at all, but it’s essential to learn why paying nanny taxes is both necessary and beneficial. You can simplify nanny payroll and tax… Read more »

• Hawaii Insurance Requirements for Employers

  In addition to federal requirements, household employers may also have state, or even local, labor and tax requirements. In HI, one such requirement is all employers (household employers included) are required to provide health insurance coverage to their employees, if they are not already covered. Below are the answers to frequently asked questions about this… Read more »

• Household Employees: Understanding the Rules

  If you employ domestic workers like nannies, housekeepers, senior caregivers, private chefs or other in-home staff, it’s important to understand your responsibilities as a household employer and properly classify workers as household employees vs. independent contractors. Determining Employee vs Independent Contractor The Department of Labor recently updated its guidance on classifying workers, looking at factors… Read more »

• Household Employment: Schedule H vs. 941

  Household employers file and pay the exact same employment taxes as commercial employers do. The IRS established the Form 1040 Schedule H in 1995 to simplify and streamline the household payroll tax reporting. Often times, however, the household employer or their CPA are confused about the proper reporting and begin filing quarterly form 941 for… Read more »

• How Much Does A Nanny Cost?

  Determining a Legal, Fair, and Attractive Nanny Pay Package As a parent, finding the right nanny or babysitter to care for your children is a top priority. In addition to vetting and selecting the perfect caregiver for your children, you have to make an attractive offer to try and hire the nanny. Compensation for the... Read more »

• Legal Nanny Payroll – It’s Worth It!

  Many families mistakenly believe that paying their nanny cash, off the books, is easiest all around. After all, no complicated tax forms, the nanny takes home more money, the family doesn’t pay taxes, it sounds good all around. Until it isn’t good at all! The Family’s Risks Unemployment Claims: Nanny jobs are, by their nature,... Read more »

• Nanny Tax Deductions for Household Employers

  As a family with household employees like a nanny, private senior caregiver, housekeeper or other domestic workers, you may be eligible for several tax deductions related to their employment costs. Taking advantage of these nanny tax deductions for household employers can provide substantial tax savings. Dependent Care Account If your family has a Dependent Care… Read more »

• The Ultimate Nanny Tax Checklist for Household Employers in 2024

  Congratulations! You are a household employer. Here's your ultimate nanny tax checklist. As a household employer, staying compliant with nanny tax rules is crucial in 2024 and beyond. When you become a household employer you also have payroll tax and reporting obligations, the so-called nanny taxes. The family, and not the nanny, is ultimately responsible... Read more »

• Why You Can’t Guarantee Your Nanny Net Pay

  If you’ve recently hired a nanny and agreed to compensation based on take-home pay (net pay), you may have noticed getting a consistent cost of payroll is more challenging than you anticipated. Here are some reasons you can’t guarantee your nanny the same net pay every time.   Income Fluctuation Your nanny is an hourly employee by law, which means… Read more »

• Are you a household employer?

  What Your Family Needs to Know... At HWS, we are experts on the tax and labor laws surrounding household employment, so you don't have to be. Let's first determine whether YOU are a household employer. Our knowledge center goes into much more depth on the details, here it is short and simple. Our lives are busy,... Read more »