Nanny Payroll

  • Background Checks and Employee Screening for Your Nanny

    March 13

    When choosing to hire a nanny or another household employee, there are many steps involved. The first beginning with who you are going to bring into your home, which is a decision you don’t want to take lightly. While you should be conducting interviews and asking for referrals, you will want to take things a step further by purchasing a background check for your potential household employee. People can say anything about their skills, experience, and behaviors, but you can’t always trust that.

  • FUTA Taxes for Household Employees

    February 12

    Good news: If you’ve figured out that you owe nanny taxes and you have your Social Security and Medicare nanny taxes squared away, you’re almost done collecting the nanny taxes you need to send off to Uncle Sam. As we have mentioned before, the nanny tax is comprised of multiple taxes. We’ve previously talked about Social Security and Medicare taxes, and now we are going to break down the Federal Unemployment Tax Act (FUTA).

  • Social Security & Medicare Taxes for Household Employees

    February 6

    The nanny tax actually consists of multiple taxes. Out of the taxes covered, Social Security and Medicare taxes are two of the most important ones you’ll want to understand when processing nanny payroll. These taxes are commonly referred to as payroll tax, but when dealing with nanny payroll, the taxes take on the name of the “nanny tax”.

  • Do You Owe the Nanny Tax?

    January 31

    Being a parent is hard work. From juggling multiple schedules, to managing a work / life balance, there is a good chance that from time to time you’re going to need a little extra help in your life. When looking to hire a nanny or household employee, you will have to make sure that this new employee is paid accurately. Often times, people believe these household employees can be paid under the table, which essentially means paying cash to avoid taxes. However, when it comes to household employees, it’s important that you’re paying the nanny tax.

  • What To Expect From Your Nanny Payroll Provider

    August 6

    Hiring a nanny is a big decision, as it will impact your personal life and finances in a number of ways.

  • Guide to Nanny Taxes

    July 10

    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.

  • To Do or Not to Do: Paying Your Household Employee Under the Table

    June 19

    Hiring a household employee sounds easy enough: you advertise the position, interview candidates, and make a final selection based on your findings.

  • Yes, You Can Hire More Than One Household Employee

    June 14

    There is no law stating that you can only have one household employee. While most people have a nanny or a housekeeper, maybe a landscaper, some households have a combination of household employees to support their needs.

  • I Have a Household Employee: What Taxes Must I Pay?

    November 7

    Whether you are in the process of hiring a household employee or already have someone working for you, it’s important you know that you are responsible for paying a variety of taxes, including those covered under the Federal Insurance Contributions Act (FICA). 

  • Not Just Nannies: Who Should Be Classified as a Household Employee?

    October 27

    Are you unsure of whether or not you have a household employee? Is this causing you confusion when it comes to taxes, such as wondering if you should issue a W-2?

  • Don't Get Into Nanny Tax Trouble [Infographic]

    December 20

    The nanny has come to play an increasingly important role in the lives of working professionals and business owners with children. Parents often have to run themselves ragged to keep up with the rigorous schedule of activities their children are involved in, not to mention balancing demanding careers. Finding the right nanny can be a huge help.

  • Breaking Down the Schedule H Form

    December 17

    Are you familiar with the Schedule H form? You may have had no use for this form in the past, but it doesn’t mean this will remain true in the future.

  • How to Pay a Nanny Over the Holidays

    December 11

    Do you have a nanny who handles a variety of tasks around your home, with the primary responsibility of caring for your child? If so, it is important to become familiar with the many laws associated with how this person is paid.

  • [Updated] Nanny Payroll: Be in the Know

    November 13

    According to the U.S. Bureau of Labor Statistics, more than 1.3 million people work as nannies or child caregivers in the United States today. The Bureau also states that the median pay for these in-house employees comes to an estimated $9.28 per hour or $19,300 per year.

  • Can I Pay My Nanny as a 1099?

    September 25

    Many people have the desire to hire a nanny. That is until they learn more about what this means from a tax perspective. Not only do you have to withhold FICA from your nanny’s paychecks, but you are responsible for paying 7.65% (6.2% for Social Security tax and 1.45% for Medicare tax) as an employer.

  • Do You Have to Provide Workers' Comp for Your Nanny?

    September 7

    When you hire a nanny, it is imperative to think of this person as more than a helper around the house. You are now this person’s employer. For this reason, you are responsible for a variety of HR-related tasks, including but not limited to insurance, payroll, and taxes.

  • I Have a Nanny: What Taxes Do I Need to Pay?

    September 7

    Hiring a nanny will impact your life in many ways, including your finances. In addition to the salary you pay your nanny, you are expected to pay a combination of taxes. Neglecting to do so could lead to trouble with the IRS, including large penalties.

  • How Do I Pay My Nanny?

    August 27

    If you require assistance caring for your child in your own home, hiring a nanny may be the best decision you can make. While this sounds like a good idea, you don’t want to take action until you answer a few key questions:

  • Nanny Payroll Part 4: Federal Income Taxes

    August 1

    By now, you’ve learned managing nanny taxes takes a bit of time, number-crunching, and paperwork. Once you’ve determined if you owe nanny taxes, you’re probably responsible for collecting two types of nanny taxes:

  • What Will Happen if Nanny Taxes Aren't Paid?

    July 27

    You have decided to hire a full or part-time nanny to help raise your child (or children). This can be beneficial for many reasons, including the fact that you know your child is in good hands when you are not around.