Update: In 2014, the Household Employee Wage threshold increased to $1900. This means that any household employee- such as a nanny, housekeeper or elder care worker- earning $1900 or more per year requires their employer to pay what is commonly referred to as the "nanny tax."

Topics: nanny payroll tax, nanny tax, worker misclassification independent contractor, nanny employee, domestic employer legal responsibilities

As families begin preparing their personal income tax returns, we are often asked whether the "nanny taxes" apply to the family's weekly cleaning person.

Topics: nanny payroll tax, nanny tax, domestic workers bill of rights

Topics: nanny w-2 form, nanny income tax, nanny tax

California State Assemblyman Tom Ammiano (D-San Francisco) is set to introduce legislation in the California State Assembly modeled after 2010's New York Domestic Worker's Bill of Rights.

Topics: nanny employment practices, nanny tax, domestic workers bill of rights, nanny work agreement

Employing a nanny is expensive. After the family's mortgage payment, the nanny's salary is often the biggest expense in the household. Add the cost of taxes on top of this and many families wonder "Why?" They reason that not paying the taxes lets the nanny keep more money and saves them 10% on taxes. The nanny makes little enough anyway - why should she have to pay tax?
Reporting nanny wages and paying Social Security taxes is the law. It is also the right thing to do for your nanny. Think about it. When you and your nanny agree to pay 'off the books' you are mutually agreeing to break the law. Is that the way you want your employment relationship with your nanny to start out? What message does that send her?

Risks of Nanny Tax Avoidance...

Topics: nanny payroll tax, nanny tax, nanny taxes, nanny tax compliance

Topics: nanny payroll, nanny payroll tax, nanny tax, nanny social security tax rate

There is an excellent article on the Washington State Workers Compensation Insurance Blog that outlines the dangers of not paying the nanny taxes, and the potential benefits to the employer for nanny tax compliance. Quoted is one of HomeWork Solutions' favorite go-to industry experts, attorney Bob King of Legally Nanny.

Topics: nanny workers compensation insurance, nanny tax, nanny tax compliance

Several pieces of federal legislation from 2010 will impact household employers and the payroll taxes (also known as Nanny Taxes) the household employer deducts from a nanny's pay check.

Topics: nanny social security tax 2011, nanny payroll tax, nanny tax