Nanny Tax Compliance - Too Time Consuming?
I have been providing Nanny Tax compliance services since 1993. I could literally do the work in my sleep. In my mind - a piece of cake! That familiarity sometimes can cause me to loose sight of the biggest advantage to employers in outsourcing nanny tax compliance - the time saved.
How much time an individual would spend on their nanny taxes will of course vary between individuals. The IRS estimates that record-keeping, keeping familiar with the law, and tax return completion can run 50 hours per year. Record-keeping accounts for the lions share of the time, averaging an hour per payroll period.
I was chatting with a client today. This gentleman has used our services for many years, and his household circumstances are changing. In the course of the conversation, I asked him what factors caused him to continue using our services year after year. He answered without hesitation "The time savings!" He went on to state that he actually spends only about one hour a year on his nanny taxes - primarily in collecting his information and responding to our quarterly requests for wage reports. (This client is a NaniTax Plus subscriber.) He was certain that he had never filed a tax return on time before hiring HomeWork Solutions, and that the savings in late fees alone was more than our fee. I suspect some exaggeration, but not much!
HomeWork Solutions allows registered clients to calculate their payroll online and save all their payroll records to their account. Reporting wages is as easy as logging into your account, selecting the payroll records and electronically submitting them for processing. Status emails are the norm - we confirm you have sent your information, we confirm we have received your information, we confirm tax amounts due when we are collecting the taxes, and we confirm when your quarterly or annual package mails. Or, as this client remarked, "I send you the information I don't need to think about it again."
How much time an individual would spend on their nanny taxes will of course vary between individuals. The IRS estimates that record-keeping, keeping familiar with the law, and tax return completion can run 50 hours per year. Record-keeping accounts for the lions share of the time, averaging an hour per payroll period.
I was chatting with a client today. This gentleman has used our services for many years, and his household circumstances are changing. In the course of the conversation, I asked him what factors caused him to continue using our services year after year. He answered without hesitation "The time savings!" He went on to state that he actually spends only about one hour a year on his nanny taxes - primarily in collecting his information and responding to our quarterly requests for wage reports. (This client is a NaniTax Plus subscriber.) He was certain that he had never filed a tax return on time before hiring HomeWork Solutions, and that the savings in late fees alone was more than our fee. I suspect some exaggeration, but not much!
HomeWork Solutions allows registered clients to calculate their payroll online and save all their payroll records to their account. Reporting wages is as easy as logging into your account, selecting the payroll records and electronically submitting them for processing. Status emails are the norm - we confirm you have sent your information, we confirm we have received your information, we confirm tax amounts due when we are collecting the taxes, and we confirm when your quarterly or annual package mails. Or, as this client remarked, "I send you the information I don't need to think about it again."
posted by Kathleen Webb at
11:01 AM
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