Employers are faced with a variety of tasks and deadlines and sometimes staying on top of activities and dates can be difficult. Did you neglect to report and pay your nanny taxes in 2016? There’s good news: it’s not too late. Here are some important must-knows.
Your household employee needs a W2 form.
Be sure that your employee has filled out the W4 form and that you have your employee’s legal name and current address as soon as possible. Communicate with your employees in advance so you can get the form completed as quickly as possible and make sure that everyone is on the same page. Please prioritize this - your nanny or caregiver needs the opportunity to get their tax documents prepared on time too!
Items needed for the W2 form preparation include:
- Your Federal Employer Identification Number
- Your employee's Social Security Number
- Your employee's legal name and current address
- A total of the gross wages paid in 2016
- A total of the Social Security, Medicare, Federal and State income taxes withheld from the employee's wage (if appropriate)
You have household payroll tax documents due.
If you paid your household employee $1000 or more* in a calendar quarter, you must have a state unemployment tax account number and you must catch up on all state unemployment tax reports and payments before April 15 or face significantly more tax due at the Federal level.
You must also include a Form 1040 Schedule H with your personal income tax filing. This schedule calculates the federal payroll taxes due for the year, and adds the tax to your personal tax return.
* Some states have lower liability thresholds.
HWS can help you get your taxes paid accurately and quickly!
If you’ve determined that you’re not sure where to start when it comes to paying for 2016 nanny taxes and it’s too hard to keep track of the updates that happen with payroll taxes around the year, we can do the work for you. We’re on your side and are experts when it comes to all things related to nanny taxes. We’ll pay attention to any deadlines that change and make sure all of the important details are covered so you don’t have to worry about it.
Contact our professional and experienced team today to talk about how we can help you get your 2016 nanny taxes filed with your personal tax return so you can avoid any penalties or other delays that could pose a problem later down the road.
What could happen if I don’t pay the nanny taxes? Are there any good reasons to pay?