Tag: taxes

No Change to Nanny Tax Threshold for 2019

By A New England Nanny 8 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 […]

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Do You Need to Pay Taxes for a Summer Nanny?

By A New England Nanny 7 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 […]

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Payroll and Tax FAQs from Nannies

By A New England Nanny 6 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 […]

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How Nannies Benefit from Being Paid Legally

By A New England Nanny 7 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 […]

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How Recent Tax Reform Affects Child and Family Tax Credits

By A New England Nanny 5 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 […]

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Nanny Tax Planning for 2018

By A New England Nanny 8 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 […]

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2018 Nanny Tax Threshold Increases

By A New England Nanny 6 0

The Social Security Administration recently released its employment coverage thresholds for 2018. Social Security and Medicare taxes (commonly referred to as “nanny taxes”) must be paid by the family and the employee for any household workers, such as nannies or housekeepers, who earn $2,100 or more in cash wages in 2018. This is a $100 […]

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Nanny Tax Compliance Infographic

By A New England Nanny 7 0

Mistakes or misinterpretations of nanny tax compliance laws can mean IRS audits, thousands of dollars in fines and penalties or an employee lawsuit. Our friends at GTM Payroll Services have created this handy infographic that highlights what you need to do to maintain nanny tax compliance. Click the image below to view a larger version.

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Steps to Comply with Nanny Tax Requirements

By A New England Nanny 6 0

If you are hiring a nanny or other household employee, it’s important to understand your obligations as a household employer. You must file all applicable nanny tax forms, Social Security, Medicare, federal and state unemployment insurances, and income taxes. These obligations apply to all full-time and part-time employees that you expect to pay over $2,100 (2018) […]

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Paying a Nanny Through Company Payroll

By A New England Nanny 6 0

Q: I own a business. Can I pay my nanny through my company payroll? A: While it may be tempting to do so, it is illegal, in most cases, to pay a household employee on a business payroll. The legal basis for keeping business and household payroll separate, according to the IRS, is that businesses can receive a tax […]

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