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Do I Need to Pay Taxes for My Summer Nanny?

Posted by HomeWork Solutions on 5/25/21 10:00 AM
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Summer is right around the corner, and kids are dreaming of their extended vacations. Unfortunately, many parents don't get the same amount of time off from their work responsibilities. Will you need an extra hand with the kids this summer?


Whether you need a temporary nanny or a full-time live-in nanny that will work year-round for you, you'll need to start looking for a reliable option right away. Once you find the right person to work with your family, you'll need to make sure their wages and taxes are paid accurately and on time. 


How do you know if you're required to pay taxes for your summer nanny? 

If you plan on paying your nanny more than $2,300 over the summer, expect taxes will be due on those wages. Your nanny is considered an employee, and you are required to file and remit taxes to the IRS. Don't make the mistake of paying your nanny 'off the books.' The "under the table" option might sound more straightforward, but you may face fees or fines for not reporting to the IRS. 


Your nanny works hard for your family, and paying her legally and fairly is essential. At the onset of her employment, be sure to outline their wage and payment schedule – in addition to any other job duties or benefits – in a written work agreement. The contract will allow them to know what their paycheck will look like, but it will also keep things in agreement between both parties, so there is no confusion later on.  


We understand you're busy, and staying up to date on the ever-changing tax laws can be tricky and time-consuming. That's why we make it easy for you to enroll in our reliable tax preparation services. HomeWork Solutions experts can help! We will ensure things are deducted and filed, so there will be no hidden tax surprises later. We'll get you registered with the IRS, get tax identifications ready, and check to ensure your nanny is paid correctly with the proper amount of taxes withheld. We have flexible, customizable service plans, so you can find the one that's right for you. Call us at 1-800-626-4829 and speak to one of our knowledgeable sales consultants to answer any of your questions. No commitment is required.

Topics: household employee, nanny summer schedule, nanny agency, nanny payroll, nanny payroll tax, nanny tax, nanny wage, household payroll, temporary nanny, nanny job search

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