It is a real pleasure to work with an outfit that is so well organized, knowledgeable, efficient.....and above all, courteous.
Your staff are outstanding and your web services are so user friendly.
I can go about my business confident that my nanny's payroll is in good hands.
Wonderful service staffed by nice people who enjoy dealing professionally with the all to often less than thrilling payroll taxes.
The following information applies to household workers whom you pay directly. If you contract these services through a third party and make all payments to the third party you are not legally the employer of the caregiver.
In general, the Internal Revenue Service requires payroll tax filings by a domestic employer who pays a household employee directly more than $1800* cash wages in a calendar year. These payroll tax obligations may include:
Examples of job titles that are typically considered household employees include aide, companion, housekeeper, cleaning lady (individual), maid, cook, personal assistant, household manager, caretaker, butler, valet, and driver. We provide more information about distinguishing a household employee from an independent contractor here.
(* The wage payment threshhold that obligates a family to pay the nanny taxes is indexed and has changed many times over the years. For years 2009 - 2011 the threshold is $1700)
(** The FICA taxes are shared between employer and employee. Typically, each party contributes 7.65%; however, for January 1, 2011 - February 29, 2012 only the employee contribution is reduced to 5.65%. If the family fails to collect this tax via payroll deductions from the employee, the family will be liable for both the employer and employee portions of the tax.)
Free Tip Sheet: Privately Employing Homecare Workers
Calculate Nanny Payroll Taxes
For More Information contact HomeWork Solutions, Inc.
at 1-800-NaniTax or e-mail and submit a question.