Did you know? If you paid your nanny $2,100 or more last year, you owe taxes. Filing taxes can seem like a daunting task, but experts at Care.com HomePay can help save time and stress. HomePay will break down what nanny taxes are and how to go about paying them.
Are you a Household Employer?
If you have a nanny or a household employee, the IRS says you are a household employer. Household employees can include a babysitter, housekeeper, in-home caregiver or personal assistant. And if you paid them $2,100 or more last year to perform work in your home, then you owe taxes!
What are Nanny Taxes?
The IRS requires household employers to withhold taxes from their nanny each pay period (as well as pay taxes of your own). The nanny tax includes federal and state tax requirements which are detailed in IRS Publication 926. This tax includes:
- Taxes withheld from the employee: Social Security and Medicare taxes (FICA), as well as federal & state income taxes.
- Taxes paid by the employer: Social Security and Medicare taxes, as well as federal & state unemployment insurance.
Does this sound daunting? If it does, know you are not alone. HomePay is here to be your trusted Tax Professional.
Care.com HomePay Makes Nanny Taxes Easy
Did you know these payroll and tax processes can take up about 55 hours per year? But don’t worry, HomePay has created a streamlined, trustworthy system to accurately manage all aspects of the Nanny Tax.
HomePay is here to process nanny payroll each period all while keeping track of federal and state taxes. When it’s time to file tax returns, they will generate and send them to the state and the IRS. During tax season, they’ll send a W-2 to your nanny and file annual forms with the Social Security Administration on your behalf. This is an incredible value and gives employers peace of mind knowing it is being handled properly. HomePay is an expert in nanny and household taxes and can save you time and stress.
HomePay is the leading provider for nanny and tax payroll services since 1992. They have filed over 2 million in tax filings and processed over $4 billion in payroll. HomePay has helped tens of thousands of families over the years and can help set you and your nanny up for tax success.
Plus, HomePay has award-winning staff that will talk you through solutions if a problem should ever arise. There is no question too small and no problem too big for their experts.
Our time is so limited with our families these days. What would you do with those extra 55 hours? Let Care.com HomePay handle payroll, taxes, and other financial to-do’s. Call them today at 877-367-1976 to get your Nanny Taxes squared away and have peace of mind this tax season.
