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  • I have heard that I may qualify for childcare related personal income tax breaks? Does this apply when I hire a nanny?

    When you hire a nanny you may qualify for a childcare related personal income tax breaks. There are two popular strategies that families with child care expenses use to minimize their personal income taxes and are in addition to the Child Tax Credit, which in 2018 rises to $2000 per child and is available to… Read more »

  • Congress simplified the “nanny taxes.” What does that mean to me?

    Congress legislated significant revisions to the “Nanny Tax” in October 1994. The remittance of the FEDERAL nanny payroll taxes was incorporated in the employing families’ annual Form 1040 filings. Most payments to household workers under 18 years of age are now exempted. The wage payment that triggers an obligation to make “Nanny Tax” filings was… Read more »

  • Do the Nanny Tax rules ever change?

    Yes. The 1995 Federal legislation, the “simplification” of the nanny tax rules, began a cascade of changes that continues today. Nanny tax rules alone are not the only regulations the household employer must follow. Numerous changes to federal and state labor laws specifically impact household employers. Federal Employer Identification Number required for all household employers. Reporting may… Read more »

  • Why Does My Nanny Family have to Pay Me Hourly? I Want a Salary.

    You landed a new job but you’re getting paid by the hour. You can’t help but ask yourself: “why does my nanny family give me hourly pay? I want a salary.” Nannies and other domestic employees are classified under the Fair Labor Standards Act (FLSA) as non-exempt. The term non-exempt employee refers to a worker who IS subject to the… Read more »

  • Nanny Holiday and Year End Bonuses

    Do I give my nanny a holiday bonus or a yearend bonus? Many employers seek guidance on bonus and incentive pay norms for nanny employment. There is no “one size fits all” solution; there are as many creative ways to approach this as there are nanny employers. A cash bonus is by far the most… Read more »

  • Why Professional Nannies Want to be Paid Legally

    In the “nanny world,” the temptation to accept a job that pays CASH (off the books, no payroll or income tax reporting) is faced by every nanny. After all, who LIKES to pay taxes? Professional nannies, however, understand nanny tax compliance and know that being paid legally is ultimately in their own best interest. Unemployment… Read more »

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

    Nanny payroll taxes, what are they?  First it is important to understand that the so called “nanny taxes” apply to ALL household employees, not just nannies. The proper collection and remittance of payroll taxes protects the employer and the employee from the possibility of penalties and interest associated with unpaid back taxes. The employer is... Read more »
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