Tag: taxes

Tax Benefits From CARES Act Student Loan Assistance

By A New England Nanny 25 0

Many nannies are students, and many of them have student loans that can be burdensome at any time, but particularly during COVID-19 when regular income is an issue. Among other measures aimed at easing student loan burdens during the coronavirus pandemic, the CARES Act student loan assistance provision temporarily allows employers to make tax-free payments […]

READ MORE

Dependent Care FSAs Save You Money When Paying a Nanny

By A New England Nanny 37 0

There are numerous reasons to pay a nanny “on the books” – you’ll recruit better candidates and keep them longer, you’ll avoid hefty fines and penalties for not paying employment taxes, and, notably, you can save money through a Dependent Care FSA (Flexible Spending Account). Our payroll partner GTM Payroll Services offers this guide to […]

READ MORE

Nanny Tax Threshold Increasing for 2020

By A New England Nanny 23 0

How does a family know whether or not they are legally obligated to pay employment taxes for their nanny or other household employee? The most telling factor is commonly referred to as the “nanny tax threshold.” This is the wage earnings amount by which the government determines if an employer must follow tax filing regulations. […]

READ MORE

How Much Will a Nanny Cost?

By A New England Nanny 46 0

One of the most common questions we hear is: “How much will my nanny cost?” There are a lot of considerations that need to be addressed before answering that question. Our partner GTM Payroll Services has put together a thorough list of factors that go into what you’ll pay your nanny. 11 Factors When Budgeting […]

READ MORE

No Change to Nanny Tax Threshold for 2019

By A New England Nanny 48 0

The Social Security Administration recently released its nanny tax threshold for 2019, and the Social Security and Medicare tax threshold is not increasing. It will remain at $2,100, which was a $100 increase in 2018 from the 2016 rate (it was unchanged in 2017). Nanny taxes must be paid by the family and the employee, such […]

READ MORE

Do You Need to Pay Taxes for a Summer Nanny?

By A New England Nanny 38 0

School will be out soon, and if you’re going to be hiring a nanny to care for the kids during the summer, you might think that since it’s only a temporary job, you don’t need to worry about payroll taxes or even insurance. But those requirements may apply even if you’re only hiring for the […]

READ MORE

Payroll and Tax FAQs from Nannies

By A New England Nanny 34 0

As a nanny or other domestic worker, you may have questions about your employment status and tax obligations. Even if it’s just a temporary placement, it’s important to understanding your (and your employer’s) responsibilities at the beginning of employment. Here are some payroll and tax FAQs from household employees. Am I an employee or an […]

READ MORE

How Nannies Benefit from Being Paid Legally

By A New England Nanny 35 0

Families benefit from legally paying their nannies or other domestic workers by staying compliant with the law and being able to take advantage of tax breaks. But a nanny benefits as well from being paid legally even though they may see a little less in their paychecks. If you’re hiring or looking to transition a current […]

READ MORE

How Recent Tax Reform Affects Child and Family Tax Credits

By A New England Nanny 39 0

The recently enacted Tax Cuts and Jobs Act (TCJA) made significant changes to income tax rates, exemptions, deductions, credits, and more. What does this mean for your family’s finances, specifically child-related tax credits? Expansion of Child Tax Credit TCJA doubles the child tax credit to $2,000 for each child under age 17. It also expands the number […]

READ MORE

Nanny Tax Planning for 2018

By A New England Nanny 39 0

Hard to believe 2018 is less than two weeks away! Now is a good time to ensure that everything is in order so there are no surprises when it comes time to pay your nanny taxes next year. Don’t put off or ignore your 2017 year-end tax planning; look at your finances and think about […]

READ MORE

©   2009-2020  A New England Nanny Ltd.