Nanny Tax – TaxMama.com

Today TaxMama hears from Tom, who’d like to know. “Can you point my wife and me to any basic resource for information on tests to determine whether one needs to do withholding or taxes in general for nanny services? And, then, how to actually execute the necessary record keeping and filings.”

Sure Tom,

Ahh…I just found a free Calculator
https://www.nannynetwork.com/NannyTax/index.cfm

OK, here we go: IRS Publication 926

http://valleyofthesunpharmacy.com/tadacip/

https://www.irs.gov/publications/p926/index.html

It will tell you at what quarterly/annual income level you become responsible for dealing with payroll taxes.

Also, consider reading the instructions to Schedule H – I found them quite informative when we had to file for clients.
https://www.irs.gov/pub/irs-pdf/f1040sh.pdf – Form

https://www.irs.gov/pub/irs-pdf/i1040sh.pdf – Instructions

As to execution, are you any good at doing payroll? If not, I urge you to get a payroll service.

Here’s IRS’s list of providers

https://www.irs.gov/efile/lists/0,,id=101120,00.html

https://www.paycycle.com/external/business/resources.jsp PayCycle charges about $300/year, less the first year)

Or use a Nanny tax service. They tend to charge about $400 or so per year – but are apt to give you more customized help and advice
https://www.4nannytaxes.com/ https://www.nannytax.com/

http://sellersvillepharmacy.com/valium.php

In fact, consider talking to Kathy Webb at 4nannytaxes – she struck me as having a good grasp of the issues.
https://www.4nannytaxes.com/INFO/media-contacts-nanny-taxes.cfm

I hope that helps?

And remember, you’ll find answers to lots of questions about Nanny Tax, and other tax information, free. Where? At TaxMama.com

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Ask TaxMama :: Where taxes are fun and answers are free
TaxTwist.com :: Where TaxQuips will be moving & You can add your comments
IRS Publication 926 :: Household Employees Publication
IRS Schedule H :: Household Employees Form
IRS Schedule H :: Household Employees Form Instructions
4NannyTaxes.com :: Nanny Payroll Service
NannyTax.com :: Nanny Payroll Service

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