Don't overlook the "nanny tax"
If you paid a household worker, such as a gardener, housekeeper, or nanny, more than $1,700 in 2011 (or will pay more than $1,800 in 2012), you may be liable for payroll taxes on the wages paid. Failure to pay the payroll taxes can lead to substantial penalties.
Click on the following link for a list of forms that you will need to file with the IRS, along with a nifty tool for calculating how much nanny tax you will owe: Nanny Tax
For details or filing assistance in meeting your “nanny tax” obligations, give us a call.
Related articles
- 7 tips for hiring a nanny… (diamondnannies.wordpress.com)
- A Look at How Brooklyn Nannies Are Paid (cityroom.blogs.nytimes.com)
