Household Employment Blog | Nanny Tax Information

Moving? 4 Ways To Keep Your Household Payroll Taxes Organized

Written by Mary Crowe, FPC | 2/28/14 6:50 PM

Moving your family can be one of life's most exciting times, yet also one of the most stressful times. Finding a new place, selling an old place, leaving a job, starting a new one or transferring within a company, packing, unpacking, leaving an old nanny, hiring a new one, (or sometimes the nanny moves or commutes to the new location if it’s a local move) the list can seem like its endless.

If you are moving, don’t forget about your nanny taxes. It’s more complicated than you may think and that is what we are here for. Helping you navigate your way in the payroll tax waters, it’s what we do.

You need to let us know your new address and when the move date.

We have state specific tips sheets that are designed for a quick reference so that you know the new rules in your new location. It’s one of my favorite tools we offer our clients, and they are free!

Things to think about when you (or even your employee) moves:

  • Let us know as soon as the move occurs. Waiting until the end of year can cause unnecessary tax return changes, late fees and penalties.
  • Unemployment is paid to the state where the work happens. If you move state to state, we will close the old unemployment account and open a new one in the new state.
  • If you move during a quarter, you may have payments and reports due to 2 states.
  • If you are withholding state income taxes for your employee, the old account will need to be closed and a new account opened, when applicable.

A Client Example:
Jody Smith has 2 caregivers to help her with her disabled child. She decided to move from one state to another to have access to a medical facility to work with her child. Jody’s plate is a very full one. The 2 caregivers moved with the family (amazing, I know).  When she called to notify us of the move all she had to give us was her new address and the date she moved.  We calculated the new paycheck amounts for her employees as she was happy to continue writing the weekly paychecks herself.   We coordinated opening new accounts and closing old ones. We collected her tax funds and paid and made the necessary tax filings.

When it was all said and done, Jody sent an email thanking us for making her life easier during this transitional time. My reply back is Jody, it’s what we do and it is our pleasure to lighten your load!

 

About the Author:Mary Crowe, FPC is HWS' Client Support and Quality Assurance Team Lead. Mary joined our team in 2011, and assumed these responsibilities in October 2012. Mary's focus is client support and internal Information Technology support, her core competencies. She brings 15 years of successful client services experience, along with strong team building and problem solving skills, to our team.