Lessons Learned During COVID-19

The COVID-19 pandemic has caused widespread economic disruption, apart from the health challenges that we are still struggling to control. While businesses and employees across different sectors have been badly affected, one of the worst hit segments are the undocumented household workers.  Many families across the country have hired nannies without going through proper documentation to avoid paying the “nanny tax”, immigration laws, and other formalities. Household workers accepted those jobs without considering the unforeseen eventualities such as the coronavirus crisis.  Now thousands of such employers have laid-off their household workers because they are concerned about maintaining social distancing, or [...]

By |2020-04-27T21:11:09+00:00April 27th, 2020|Nanny Tax|0 Comments

I Can Do This!

How Can NannyPay Help Me? Since 1997, NannyPay remains the leading payroll software tool created by household employers for household employers. The new, next-generation NannyPay2 software continues the software's tradition of simplicity, but has been enhanced based upon our company's almost two decades of experience serving the household payroll market. NannyPay2 is feature-rich, yet simple to use. For example, NannyPay will calculate all federal and state withholding taxes for you, and then print a detailed pay stub you can give to your nanny each week. At year end, NannyPay will even print Forms W-2 and W-3 from the plain paper in your printer, suitable [...]

By |2019-08-19T15:46:33+00:00September 19th, 2019|Nanny Tax|0 Comments

6 Steps To “Paying By the Rules” for Nanny Taxes

STEP 1: Determining Your Household Employee's Employment Eligibility STEP 2: Registering with the IRS and State Revenue Departments STEP 3: Determining How Much You Must Pay Your Household Employee STEP 4: Determining What Taxes You Must Withhold STEP 5: Learning About Your Other Obligations STEP 6: Filing Reports and Paying the Government

By |2019-12-26T17:05:07+00:00September 12th, 2019|Nanny Tax|0 Comments

Is My Payroll Information Safe?

"Cloud computing". It's the latest buzzword. Although an online payroll service might seem convenient, check the news on any given day and you are bound to read about the latest "cloud" security virus or data breach. And what happens to all your payroll data if that online company goes out of business? In today’s age of identity theft and internet security breaches, you can feel confident trusting NannyPay with your and your employee's sensitive payroll data and personal information. With NannyPay, only YOU have control and access to your payroll data, as both the NannyPay software and your datafile are [...]

By |2019-10-01T15:27:28+00:00September 5th, 2019|Nanny Tax|0 Comments

Registering with the IRS and State Revenue Departments

Registering with the IRS as a Household Employer Once you have verified that your household employee can legally work for you, your next step is to register with the Internal Revenue Service (IRS) as a Household Employer. You do this by completing Form SS-4 and sending it to the IRS. The IRS will then assign you an Employer Identification Number, or EIN. An EIN is the number used to identify you as an employer, and will be placed on all your tax filings as an employer much like your Social Security number is used to identify you as an employee, [...]

By |2019-10-03T14:16:11+00:00August 22nd, 2019|Nanny Tax|0 Comments

Determining How Much You Must Pay Your Household Employee

Paying your Household Employee Although the issue of compensation is generally between you and your household employee, the government sets certain minimum standards. The Federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record keeping, and child labor standards affecting some full-time and part-time workers in the private sector. Domestic service workers such as full-time nannies, babysitters, housekeepers, chauffeurs, and cooks are covered by the FLSA if (1) their cash wages from one employer are at least $2,100 in a calendar year (or the amount designated pursuant to an adjustment provision in the Internal Revenue Code), or (2) [...]

By |2019-10-03T13:57:50+00:00August 15th, 2019|Nanny Tax|0 Comments

Determining What Taxes You Must Withhold

When do Household Employers Start Withholding Taxes? If your household employee will earn $2,100 or more per year, you must withhold Medicare and Social Security taxes, commonly referred to as FICA. If you will pay your household employee $2,100 or more this year in gross wages, you are required by federal law to withhold and pay Social Security and Medicare taxes, which are sometimes collectively referred to as FICA taxes. One half of the total FICA tax you owe the government is withheld from your household employee's wages. NannyPay will automatically calculate the correct amount of FICA withholding.  You will [...]

By |2019-10-03T14:40:26+00:00August 8th, 2019|Nanny Tax|0 Comments

Learning About Your Other Obligations

Important Tax Forms and Tax Dates for Household Employers By no later than January 30th, you are required to give a Form W-2 ("Wage and Tax Statement") to each household employee you hired the previous year. Form W-2 consists of several lettered and numbered copies. Copies "B", "C" and "2" are for your employee. Remember, you are required to give each employee to whom you paid wages the previous year a Form W-2, even if they no longer work for you. If your employee leaves during the year, you can give them a W-2 at any time; you do not need to [...]

By |2019-10-03T14:31:12+00:00August 1st, 2019|Nanny Tax|0 Comments

Filing Schedule H, Reports and Paying the Government

Filing Schedule H and Paying the Federal Government Typically, household employers are required to report to the federal government once a year at tax time (April 15th) by filing a Schedule H (Household Employment Taxes) with their own income tax returns. The Schedule H lists the federal employment taxes you withheld or owe for the relevant tax year. Employment taxes may include FICA, and federal income tax withholding, your employer's share of FICA, and your Federal Unemployment Tax (FUTA) liability. You add all your employment tax liability reflected on your Schedule H to your Form 1040 or 1040A, and pay [...]

By |2019-10-01T15:59:04+00:00July 25th, 2019|Nanny Tax|0 Comments

Determining Your Household Employee’s Employment Eligibility

Is your Nanny Legally Able to Work for you? Can your household employee legally work for you? This issue is all too often overlooked but should be on of the first questions you ask a potential employee. It is unlawful to employ, or continue to employ, any person as a household employee who cannot legally work in the United States. When you hire a household employee to work for you, you are responsible for verifying that this person is legally eligible to work in the United States. Verification your Nanny can Legally work in the US You and your household employee must [...]

By |2019-09-10T07:35:01+00:00June 27th, 2019|Nanny Tax|0 Comments