Nanny Tax & Payroll Updates! HomeWork Solutions

2007 is coming to a close and nanny employers (all household employers for that matter) need to attend to year end tax reporting. Here are some tips for a trouble free tax year.

1. Do you have all tax ID numbers? At a minimum you need a Federal Employer Identification Number (from the IRS) and in most cases a state Unemployment Tax Account Number (from the state's Department of Labor or Bureau of Employment Security).
   
   Filing tax documents with missing ID numbers will virtually guarantee errors in recording your information.


2. Verify your employee's personal information, include the spelling of his/her name as it appears on the Social Security Card AND the Social Security Number. If you have employees who separated during the prior year, make sure you have a current address for mailing the form W-2.
   
   A mis-match between the employee name and Social Security Number will generally result in your becoming a pen pal with the Social Security Administration at a future date. This may also delay the processing of any income tax refund your employee may be due.


3. Double check all your calculations. Correcting year end forms after they have been submitted is not a pleasant task. The Social Security Administration provides a 28 day grace period between when you must provide W-2s to your employees and when you must file with SSA. Allow your employees to review their W-2 and come to you with any errors before you mail off the SSA copies.

HomeWork Solutions has a variety of service options available to assist nanny employers with employment tax compliance.

Do you withhold income taxes from your employee's pay? If so, please check that your withholding rates have not changed between 2007 and 2008.