Choosing to bring a household employee into your home is an exciting process. From helping with your kids or ailing parents, to cleaning your house and mowing your yard, household employees can make your life simpler. However, not so simple? Paying your household employees. Often times, people believe that household employees can be paid under the table and consider it a win-win for all parties involved. Doing this is not only illegal, but can cost you big time if you are caught.
Whichever type of household employee you have one thing remains the same: The Nanny Tax. Without paying this tax, you could wind up paying up to $25,000 in fines and penalties.
So how can you avoid this?
In our easy-to-use Guide to Nanny Taxes, we have laid out everything you need to know about having a household employee. We explain:
How to avoid the costly fines and penalties
How to protect yourself as an employer
How to make sure your household employee gets the Social Security and Medicare Benefits they deserve
Why you may want to consider outsourcing payroll for your household employee(s)