When you welcome a nanny into your home, you're inviting someone to play an important role in your family's life. Offering benefits is a wonderful way to show your nanny just how much you value their care, dedication, and professionalism.

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When hiring a nanny or other household employee, it's common to hear about guaranteed hours—and for good reason. This benefit offers financial consistency for your employee while giving your family scheduling flexibility. However, confusion often arises when families try to translate this into a “salary,” which can unintentionally lead to violations of wage and hour laws under the Fair Labor Standards Act (FLSA).

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Hiring someone to work in your home—whether a nanny, senior caregiver, or housekeeper—comes with responsibilities. One of the most important is verifying that your employee is legally authorized to work in the U.S. That starts with completing Form I-9, but in some states, there's an extra step: using E-Verify.

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When families begin considering in-home care—whether for a child or an aging loved one—questions about costs come up quickly. One of the most common: Are these expenses tax deductible? The answer is: sometimes, yes. But it depends on your situation and the type of care provided.

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Tax season can be stressful, especially if you end up owing more than expected. Many nannies and other household employees find themselves with a surprise tax bill, often because of how income tax withholding is handled throughout the year.

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Did you employ a nanny or other household worker in 2024 and pay them $2,700 or more in wages? If so, congratulations—you’re officially a household employer with tax filing obligations in the eyes of the IRS! That means you will need to report your employees’ wages and pay employment taxes when you file your federal income tax return.

Topics: agency, CPA, nanny taxes 2024, household employer tax forms

A Guide for Nannies Picking Up Side Jobs

Babysitting is an essential service for parents who want to go on a date, attend a child-free event, or simply have some time to recharge. However, when tax season arrives, many caregivers wonder whether they need to pay taxes on those earnings. The answer depends on how much money changed hands and whether the temporary work meets the guidelines for self-employment.

Topics: household employee taxes, nanny, agency, nanny side jobs, babysitting taxes, babysitter self-employment tax

If you’ve hired a nanny, you’re responsible for handling their payroll and taxes correctly—and that includes issuing a W-2 at the end of the year. But a W-2 isn’t just a form you fill out in January; it’s the final step in a yearlong process of paying your nanny legally.

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Surprisingly (or maybe not…), the Internal Revenue Code doesn’t provide a neat little list of exactly what can and can’t be deducted as a business expense. Instead, it gives us this broad guideline:

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