Paying someone to watch your child may seem like a routine affair, but technically you probably become an employer the moment you hire babysitting services in your home. While there are exceptions for sitters under 18, babysitters can legally be seen as employees. This means you might owe babysitter taxes to the government. Babysitter Tax Threshold for 2025 The babysitter tax threshold for 2025 is $2,800, which represents a $100 increase over the previous year. In simple words, if you pay a babysitter (age 18 or older) at least $2,800 in cash wages in 2025, the family and the [...]

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 2025 nanny tax threshold is $2,800, which means if a household employee earns $2,800 or more in cash wages this year, Social Security and Medicare taxes must be paid by the [...]

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, [...]