No matter how detail-oriented you are, managing household payroll can be a big job with a lot of unknowns. Household payroll is especially complex and the government takes these types of taxes and payments very seriously. So, if there are obvious mistakes or they are paid incorrectly, there could be some very expensive consequences for this, including steep penalties and fees.
There are a lot of rules that direct you on what qualifies as income and what doesn’t for your household employees. They can be complex and hard to understand. For example, many people are confused and think that a bonus is a gift, not payroll. Making sure that you name and properly claim the income is very important or else there could be big consequences down the road.
Staying on schedule:
Paying payroll taxes in a timely manner is crucial. The government has very strict rules about this and once you reach a specific payroll threshold, some payroll taxes are expected be paid within fice business days or else you can face high percentage penalties.
Do you know all of the paperwork that is required for your household employee? Do you know if you need a 1099 or a W-2? If you issue the wrong paperwork or end up missing a tax deadline because of not having the right paperwork lined up, you could be making a serious mistake.
Keeping up with changes:
Tax rules and requirements change regularly and staying up with all of those changes can be very time consuming and confusing. If you don’t plan ahead and factor in the time that is associated with staying current on payroll taxes, you may find yourself behind with a deadline looming.
Hiring a team of household payroll and tax specials means that you’ll have professionals helping you budget and plan for proper payroll tax payment. This means that you won’t overlook any important information when it comes to household payroll and you’ll have peace of mind throughout the year. Contact us today to find out which services you need and which service package will work best for your situation.