The Ultimate Nanny Tax Guide
What is the “Nanny Tax”? Hiring the “right” nanny or other household employee can be a difficult task. Although finding a trustworthy, competent employee will be your top priority, families who choose to hire their own household help will also need to understand the "nanny tax". The nanny tax is a federal tax paid by people who employ household workers and pay wages over a certain amount. The 2022 nanny tax threshold is $2,400, which means if a household employee earns $2,400 or more in cash wages this year, Social Security and Medicare taxes must be paid by the employee [...]