SDM Accounting Insights: The “Nanny Tax” Must Be Paid For More Than Just Nannies

Episode 22 July 31, 2019 NaN
SDM Accounting Insights: The “Nanny Tax” Must Be Paid For More Than Just Nannies
SD Mayer
SDM Accounting Insights: The “Nanny Tax” Must Be Paid For More Than Just Nannies

Jul 31 2019 | NaN

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Show Notes

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper or other household employee (who isn’t an independent contractor) may make you liable for federal income tax, Social Security and Medicare (FICA) tax and federal unemployment tax. You may also have state tax obligations. In 2019, you must withhold and pay FICA taxes if your worker earns cash wages of $2,100 or more. You pay household worker obligations by increasing your quarterly estimated tax payments or increasing withholding from wages, rather than making a lump-sum payment. Employment taxes are then reported on your tax return. Contact us for assistance.

https://www.sdmayer.com/insights/blogs/individual-tax/the-nanny-tax-must-be-paid-for-more-than-just-nannies/

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