Monday, June 05, 2006
Summer Nanny? "Nanny Tax" Tips...
Many families engage high school and college students to provide summer nanny services when their children are on summer holiday.
What many families don't realize, however, is that this employment will trigger a "nanny tax" obligation for many of them.
The 2006 wage threshold for the Nanny Taxes is $1500 in wages paid to any one individual. Many families will pay this in just a month of care. Additionally, in most jurisdictions if the family pays $1000 or more in a calendar quarter (Apr- June or July - September) an additional obligation for unemployment taxes is incurred.
Some situations are exempt from these Nanny Taxes - primarily caregivers who are younger than 18 and whose primary occupation is that of a student. Most college aged caregivers, however, are subject to the Nanny Taxes.
More information is available online in the HomeWork Solutions FAQ.
What many families don't realize, however, is that this employment will trigger a "nanny tax" obligation for many of them.
The 2006 wage threshold for the Nanny Taxes is $1500 in wages paid to any one individual. Many families will pay this in just a month of care. Additionally, in most jurisdictions if the family pays $1000 or more in a calendar quarter (Apr- June or July - September) an additional obligation for unemployment taxes is incurred.
Some situations are exempt from these Nanny Taxes - primarily caregivers who are younger than 18 and whose primary occupation is that of a student. Most college aged caregivers, however, are subject to the Nanny Taxes.
More information is available online in the HomeWork Solutions FAQ.
