Nanny taxes

posted 1 year ago in Finances
Post # 2
Member
899 posts
Busy bee

I would imagine for a nanny, you wouldn’t take out taxes but they would just have to put money aside to pay the taxes themselves. That’s how many do it in my area. Also, always advertise the amount before taxes. That’s what any professional job does. 

Post # 4
Member
3408 posts
Sugar bee
  • Wedding: June 2016

Legally, you are responsible for withholding taxes. If you pay someone more than $2000 (maybe a few hundred more than that, I don’t know for sure) a year, you are responsible. 

However, in my area, it’s always done under the table. 

So, you can do with that what you wish. I believe Care.com offers information on how to withhold taxes. 

No, you shouldn’t need to do pay stubs. Just an annual W-2. And since you’re paying the same amount every week, this should be really easy. 

Post # 6
Member
828 posts
Busy bee

There are a lot of third-party solutions for this kind of thing. I worked for a personal financial planning, wealth management, and tax accounting firm in grad school and we used HomeWork Solutions to help clients manage withholding and payments for personal assistants and the like. It’s an easy solution and creates a paper trail that can protect you from any reporting issues or potential disputes should your nanny end up not working out. 

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