Don't Wait Until Tax Season to Handle Your Nanny Taxes

Household employment taxes are a year-round responsibility

Updated

Every year, we talk to a lot of household employers who are facing expensive tax and legal problems for failure to handle their household employment taxes correctly. The vast majority of those problems are easy to avoid -- if you address payroll at the time of hire. Unfortunately, many families wrongly assume they can just take care of it during year-end or hand it over to their tax professional in April.

What's the problem with that approach? While it is legally permissible to remit the federal household employment taxes with your income tax return next April, there are state filing requirements that cannot be put off until next April. Most states require that employment tax returns be filed quarterly -- and some have monthly requirements. Waiting until next April will trigger late filing penalties and interest charges from your state. (In addition, you may incur underpayment penalties on the federal taxes if the amount owed takes you out of the IRS "safe harbor").

Finally, there are important labor law requirements that, if not handled correctly from the outset, can create liabilities for families. That's why we take the time to guide families through things like Form I-9, workers' compensation insurance, disability insurance, overtime and other state-specific requirements.

Give us a call and let our New Employer Orientation team help you make a problem-free, stress-free hire. When it comes to the tax and legal aspects of being a household employer, an ounce of prevention is definitely worth a pound of cure.

 

First things first—have you hired a caregiver?

If you're seeking a caregiver or a care job, visit Care.com

What type of caregiver have you hired?

Have you already made any payments to your caregiver?

Yes
No

If you've made payments, we'll help you track them and we'll provide your employee with pay stubs.

We'll help calculate the taxes in your state.

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What type of caregiver are you planning to hire?

When do you expect to hire someone?

How many hours do you estimate your caregiver will work?

0 - 15 hours / week
15 - 40 hours / week
40+ hours / week
24 / 7

We'll help calculate the taxes in your state.

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