Nanny Tax & Payroll Updates! HomeWork Solutions

• $1500 - The wage threshold that obligates a family to pay the "Nanny Taxes." These include Social Security and Medicare, and may include Federal and State Unemployment taxes.


• $1712 - The maximum amount of advanced earned income credit a nanny (with at least one qualifying child) may receive in 2007. The nanny must also be expected to earn less than $33,241.


• 48.5 cents per mile - the standard mileage rate, which families often use to reimburse nannies on a tax-exempt basis for the business use of the nanny's personal automobile. This includes transporting the children in their care and family errand-running.
  
• $110 - The tax-exempt monthly amount a family can provide to a nanny for qualified transit passes or van pool fees.


• $215 - The tax-free monthly amount a family can provide to a nanny for qualified parking benefits.


• $5,250 - The annual tax-exempt limit for employer-provided educational assistance.


• $1,100 - The amount per employee that a family may be charged for willful violations of the minimum wage and overtime requirements of the Fair Labor Standards Act. Nannies and other domestic workers ARE explicitly covered by the FLSA.

Labels: nanny fringe benefits, nanny tax threshhold, non-taxable nanny benefits