Tax Responsibilities for New York Household Employers

Tax Responsibilities for New York Household Employers

By A New England Nanny 25 0

tax responsibilities for new york household employersIf you pay your nanny or other household employee $2,000 (2016) or more in a year, you are required to pay state and federal taxes.

Taxes required to withhold, file, and pay:

  • Social Security
  • Medicare

Other taxes GTM strongly recommends withholding (but are not required):

  • Federal Income Tax
  • State Income Tax
  • Local Taxes, such as the New York City Local Tax

In New York, household employers are responsible for the following four taxes, to be added on top of the employee’s gross wage:

  • Social Security Tax Rate of 6.2%
  • Medicare Tax Rate of 1.45%
  • Federal Unemployment Tax Rate of 0.6%
  • State Unemployment Tax Rate of 4.1%

Calculation Example: Employee earns a gross salary of $850 per week:

EMPLOYEE GROSS TO NET CALCULATION PER PAY PERIOD
Weekly – 52 pay periods per year Gross Pay $850
Federal Income Tax $101.32
Social Security $52.70
Medicare $12.33
State Income Tax $36.17
Local Income Tax $22.93
Employee Take-Home Pay $624.56
EMPLOYER TAXES PER PAY PERIOD
Federal Unemployment* $5.10
Social Security $52.70
Medicare $12.33
State Unemployment** $34.85
Employer Responsibility $104.98
Total Employer Responsibility $954.98

* On first $9,000 of gross wages/calendar year
** On first $10,500 of gross wages/calendar year

Through our partnership with GTM Payroll Services, we have arranged for you to receive a FREE payroll and tax consultation. Their experts will walk you through your responsibilities step-by-step. Call GTM at (888) 432-7972 and mention our agency to receive a special discount!

Contact us at (518) 348-0400 if you have any questions or need more information.

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