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Nanny Tax FAQ

  • 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, and we... Read more »
  • I have a housekeeper working in my home. What taxes do I need to pay?

    In general, the Internal Revenue Service requires payroll tax filings by a domestic employer (household employer) who pays a housekeeper or other household employee more than $2200 cash wages (2020) in a calendar year*. These payroll taxes are collectively referred to as “nanny taxes”, although as a practical matter these employment taxes are applied to… Read more »

  • Is my nanny an “independent contractor.” Can I do that?

    Is my nanny an independent contractor? Can I give my nanny or senior caregiver a 1099  and let her file her own taxes? Most Workers are Employees! The US Department of Labor’s Administrator of the Wage and Hour Division, David Weil, clearly stated on July 15, 2015 that most workers are considered employees under the… Read more »

  • So what are the payroll taxes household employers pay?

    Nanny taxes, what are they?  First it is important to understand the so called “nanny taxes” are not just for nannies! The Nanny Tax is a catchy phrase for headline writers! However, these are really household employment taxes and apply when you hire a nanny, housekeeper, maid, senior caregiver or other domestic worker. Household employers... Read more »
  • Why is my nanny an hourly employee? I want to pay her a salary and not worry about tracking hours each week.

    Nannies and other ‘domestic service employees’ are classified under the Fair Labor Standards Act (FLSA) as non-exempt workers. The term non-exempt employee refers to a worker who IS subject to the terms of the FLSA regarding such issues as overtime compensation and minimum wage coverage, contemporaneous time tracking record keeping, as well as nanny pay… Read more »

  • Do I need to pay my housekeeper or nanny overtime? What about nanny minimum wage?

    The simple answer is yes. Domestic employees specifically are covered by the Fair Labor Standards Act (FLSA) and have been since 1974. The FLSA establishes: The rules for workers who may be salaried (exempt) and who must be paid overtime (non-exempt). The rules for workers who must be paid no less than minimum wage. State… Read more »

  • What payroll taxes does my nanny (housekeeper, maid) pay?

    Nanny payroll taxes, what are they?  First it is important to understand the so called “nanny taxes” apply to ALL household employees, not just nannies. Your household employee (nanny, housekeeper, senior caregiver, etc.) contributes to or pays: Social Security & Medicare Taxes (via payroll deduction) Employee Disability/Unemployment Taxes where required. Federal/State Income Taxes The employer... Read more »
  • How are the nanny’s (employee’s) payroll taxes paid?

    Nanny payroll taxes – most household employers have BOTH Federal and State tax reporting and filing obligations. But how do payroll taxes work? Household Employers: How to Pay Nanny Payroll Taxes Checklist Federal Employment Taxes The Federal employment taxes include Social Security tax, Medicare tax, withheld Federal Income Tax (if applicable), and the Federal Unemployment… Read more »

  • Am I required to offer my nanny benefits such as vacation time, sick time, or paid time off?

    US employers are not required to offer benefits such as paid vacation time, paid sick time, medical or life insurance, or retirement savings plans unless stipulated by state or local laws. However, employers with full time, permanent staff find that offering some basic level of benefits keeps them competitive in the employment market, attracting and… Read more »

  • How often do I need to pay or remit the “nanny taxes”?

    Many wonder how to pay nanny taxes and how often to file. Understand that the federal and state filing schedules are NOT synchronized. Additionally, not all states have the same reporting schedule. Federal Employment Taxes: Employers of domestic workers must, at a minimum, make annual payments for Social Security, Medicare and Withheld Income Tax (if… Read more »

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