For many working parents, finding a hired caregiver/nanny that they trust to be with their children during the workday is extremely important. It may be convenient to pay your nanny under the table, but not only is this illegal, but it can be incredibly costly if you get caught. If you do not pay nanny taxes, there are heft fines and penalties, sometimes ranging upwards of $25,000.

Many families find this both complicated and time consuming. Prefering to dedicate this time to their family, they outsource the nanny payroll to a specialty nanny payroll service like HomeWork Solutions.  

If you’re determined to figure out how to pay the nanny taxes yourself, here are the steps on how to pay your nanny legally.

Topics: nanny tax

What is a summer nanny? Are you responsible for the nanny taxes with a summer-only nanny?

Topics: summer nanny, nanny tax, nanny taxes

A Nanny Tax Case Study

Its true! Ignoring the nanny taxes opens up a whole host of complications and not a single one gets better if you ignore it!

Topics: nanny payroll, nanny tax

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<p><strong>Please include attribution to http://www.homeworksolutions.com with this graphic.</strong><br /><br /><a href='http://info.homeworksolutions.com/blog/millennial-childcare'><img src='http://cdn2.hubspot.net/hubfs/54123/1601_ig_home-work-solutions_millennial-guide-to-childcarev2.jpg' alt='Your Millennial Guide to Childcare [INFOGRAPHIC]' width='' border='0' /></a></p>

Millennials, as a whole, are starting to have children, and since raising a child can be expensive, many Millennials choose to work and use childcare services for help. If you’re a Millennial and you’re interested in learning more about childcare services, then check out some of our thoughts below.

Topics: nanny tax, nanny taxes, childcare, millennial

Do you have a nanny and pay him or her over $2,000 in wages? Congratulations! Now you’re considered a household employer and must file Social Security and Medicare payroll taxes. You will have to report your nanny’s income and taxes paid for the year as well as file report and pay employment taxes on your federal income tax return. There are several forms you need to understand if you employ a nanny in the home. Read on to learn more about these tax forms.

Topics: nanny tax, nanny taxes

If you hire people to work in your home -- such as nannies, private nurses, or housecleaners -- then you’re a household employer. You’re responsible for filing the proper taxes and getting the right paperwork to your employees if you pay them over $2,000 for the year (as of 2016).

Now that it’s tax season, be sure you’re providing your domestic workers with the proper paperwork. Start with the following information to ensure a stress-free tax season.

Topics: household employer, nanny tax, nanny taxes, domestic worker

Confused about how nanny taxes affect the taxes you pay on your housekeeper’s wages? In honor every mom who appeciates extra help keeping the home in order, we thought we’d clear up some common misconceptions surrounding an employer’s tax obligations on their housekeeper’s wages.

Topics: housekeeper, cleaning lady, nanny tax, nanny taxes

Generally, in life, it pays to do things right the first time. Your nanny payroll taxes are no exception to the rule: while it may be tempting to evade these pesky taxes, in the long run, you will be thankful that you managed your household employment taxes well. It will cost much more of your money, time, and patience to deal with the consequences of tax fraud than to file your payroll taxes correctly the first time around!

Topics: nanny tax audit, nanny tax statute of limitations, nanny tax, nanny taxes, caregiver, nanny tax case study

Part Time Nannies, Summer Nannies

MYTH “My nanny only works during the summer months when our kids are out of school. I don’t need to worry about nanny taxes since she is only a temporary employee.” 

Topics: nanny tax, nanny taxes

HWS has been providing Nanny Tax compliance services since 1993. Did you know, in a recent client survey, the biggest motivation for employers in outsourcing nanny tax compliance is the time saved?

How much time an individual would spend on their nanny taxes will of course vary between individuals. The IRS estimates that record-keeping, keeping familiar with the law, and tax return completion can run 60 hours per year. Record-keeping accounts for the lions share of the time, an activity that needs to be done every payroll period.

I was chatting with a client today. This gentleman has used our services for many years, and his household circumstances are changing. In the course of the conversation, I asked him what factors caused him to continue using our services year after year. He answered without hesitation "The time savings!" He went on to state that he actually spends only about one hour a year on his nanny taxes - primarily in collecting his information and responding to our quarterly requests for wage reports. (This client is a NaniTax Plus subscriber.) He was certain that he had never filed a tax return on time before hiring HomeWork Solutions, and that the savings in late fees alone was more than our fee. I suspect some exaggeration, but not much!

Topics: nanny payroll, nanny tax, household payroll tax