The Payroll Blog

News, tips, and advice for small business owners

Guide to Nanny Taxes

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Stephanie Davis

Did you know that failing to pay the nanny tax can cost you up to $25,000 in fines and penalties?

In our four-page Guide to Nanny Taxes, you’ll learn about the nanny tax, exemptions for paying the nanny tax, definitions of tax forms you’ll likely need to know about and more. We also have a little breakdown below.

The Nanny Tax

It would be nice if the withholding percentages stayed the same every year. However, nanny payroll is not a set it and forget it task, so you’ll want to stay on top of the withholding rates every year. Below, you’ll see what the rates are for 2020 and see some examples of how exactly the withholding works.

Social Security and Medicare Taxes

How a Nanny Payroll Provider Can Help

You chose to hire a household employee because you have a lot on your plate already. Throwing in the complexity of nanny payroll and taxes is something that is just going to be another time-consuming item on your to-do list. Thankfully, there are options for getting help with your nanny payroll. At SurePayroll, we understand that your life is busy already, so we do our best to keep things simple and keep you nanny tax compliant. If you choose for your nanny payroll needs you can expect: 

  • Mobile access. Because you have a busy schedule with a lot to juggle, we have a free mobile payroll app available for iOS and Android devices so you can approve payroll on the go.
  • No contracts. Due to the nature of having a nanny or other household employee, you may not necessarily have a long-term plan in place for employing them. Because of this, you can cancel at any time and aren’t tied into any long-term contracts with us.
  • Peace of mind. As we mentioned, at SurePayroll, we strive to keep you tax compliant, which is why we have a taxes paid and filed guarantee: “If you receive a notice from the IRS, or any other tax agency, based on a filing that SurePayroll made for your organization, we’ll work with the agency to help resolve the issue on your behalf. And, if we’re at fault, we’ll pay all the associated penalties and fines.”
  • Flexible payroll options. Between work, little league games, vacations, and other family activities, life can be so busy you forget to process payroll. It’s because of these “when life happens” moments that we decided to give payroll some flexibility. If you pay your nanny or household employee the same every week, you can use our auto payroll feature and put payroll on cruise control. For those moments when payroll completely slipped your mind, you can call our customer service team, and they can set up same-day or next-day payroll for you.
  • U.S.-based customer service. Our customer service team is award-winning and has extended hours on nights and weekends so you can get the help that you need. Whether you call, email or chat online, our team is prepared to answer your nanny payroll questions.

Bottom Line

The nanny tax can be confusing, and overwhelming to handle, especially if this is your first household employee. If you are ready to get started, you can view and download our Guide to Nanny Taxes, or request a quote to talk to our sales team to better understand how we can help you with your nanny payroll needs.

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This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.