What you should know about Nanny Taxes!
One of the most common questions we get as a Household Staffing agency is, "What am I supposed to do about taxes for this new employee?" We are by no stretch of the imagination tax experts, but we can provide some direction for you.
1. Research the Nanny Tax/Household Employer Laws for your state. In general, if you pay an employee more than $1000 per quarter you can expect to pay taxes.
2. Adding your Household Staff to payroll, can help them feel valued. It helps them build their Social Security, Medicare and Unemployment Benefits.
3. Doing things the legal way has benefits for you as well. There are tax credits you become eligible for. Some employers offer dependent care benefits you can use towards your Nanny.
4. If you have an accountant, talk to them as soon as you decide to add someone to your household payroll.
5. If numbers are not your thing, use a service like MyHomePay - they take care of everything for you - make sure to mention Patty Cake Nannies for a discount!
It is never too late to put your Household Employee on your Household Payroll, but the beginning of the year is a great place to begin. April 15th comes quickly every, so make sure you are prepared!