Millions of Americans have lost work this year and are collecting unemployment benefits. However, many people are unaware that the money you are collecting from unemployment is considered income and is taxable. Federal income tax is always owed on unemployment benefits. To avoid a surprise tax bill during tax season, be sure to withhold taxes or pay estimated taxes ahead of time. Here are some helpful tips to ensure that you don’t have to face an unexpected hit on your benefits later. 
Topics: nanny agency, nanny tax, agency
Topics: nanny, nanny payroll tax, nanny tax, agency, senior, CPA, Tax Holiday
There is no doubt about it: 2020 has been a year of surprise and change. Parents have had to get creative in how they care for and school their children, in addition to adjusting their own career schedules to make it work. Nanny shares and learning pods are two effective methods that parents are using around the country to provide quality education and care for their kids.
Topics: household employer, nanny, nanny tax, household payroll, agency, private educator, Learning pods
Topics: nanny, nanny payroll tax, nanny tax, agency, senior, CPA, Tax Holiday
A nanny will become an essential member of your household, caring for the most precious part of your life. So it’s a sensible decision to onboard a nanny (or any household employee) the correct way. These four steps will ensure that your nanny can begin work without delay and, come tax season, you or your tax preparer will have the necessary elements to file correctly.
Topics: hiring a nanny, nanny, nanny tax, nanny tax compliance, agency, senior, CPA
Topics: filing taxes, nanny, nanny tax, Senior Caregiver Payroll, agency, senior, CPA
Unless you’re a tax expert, you likely have some questions about what your responsibility is when it comes to paying taxes on your household employee. If you have a nanny and you have paid this person $2,100 or more in wages, you’re officially considered a household employer and you’re required to pay Medicare and Social Security taxes. You will also need to report your nanny’s income and taxes that are paid for the year, as well as pay Federal employment taxes with your federal income tax return. Most states require filings every quarter and the state and federal thresholds are often different, based on quarterly or annual wages. Although you file a schedule H annually, be aware you may be required to pay quarterly estimated tax payments.
Topics: nanny tax, CPA, employment compliance
You’ve found a nanny to care for your children and now comes the conversation of payment and taxes. If your nanny doesn’t want you to report her wages or pay taxes, how should you respond? It may be convenient to pay your nanny under the table, but not only is this illegal, it could be very costly if you end up getting caught. Failure to pay nanny taxes could result in hefty penalties and fines, often in the thousands of dollars range.
Topics: nanny tax, household payroll tax
We’ve seen it shatter the dreams of potential officeholders, time and time again — no, it’s not adultery, bribery, or breaking into the Democratic National Headquarters — we’re talking about the nanny tax.
Topics: nanny tax, nanny taxes
