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Before you hire a nanny, you need to be aware of the tax implications. There are certain taxes that you will have to pay when you hire a nanny and you need to know what they are. You should also be aware of the potential repercussions if you neglect your liability.
What Are the Taxes?
When you hire a nanny, you will need to meet the federal and state requirements per the IRS Publication 926. The taxes you have to know about are those which are withheld from the employee and those which are paid by the employer. The withheld taxes including social security and federal as well as state income taxes. The taxes paid by the employer will be social security and unemployment insurance on both federal and state levels.
You will be liable for these taxes if you are paying your nanny $2,100 or more per the calendar … Read More