Frequently Asked Questions about the Nanny Taxes
"Nanny Tax" Basics
- Am I a household employer?
- I have a domestic (nanny, elder care giver, housekeeper) working in my home. What taxes do I need to pay?
- What taxes does my employee pay?
- How are the employee's payroll taxes paid?
- How often do I need to pay these taxes?
- Congress simplified the "nanny taxes." What does that mean to me?
- What is "New Hire Reporting"?
Legal & Insurance Issues
- Why is my nanny an hourly employee? I want to pay her a salary.
- Do I need to pay minimum wage? What about overtime?
- What about tracking the nanny's hours? What is required?
- Do I need a written agreement or contract with my nanny?
- What about worker's compensation and disability insurance?
- Is health insurance for my domestic (nanny, elder care giver, housekeeper) taxable?
- How frequently do I need to pay my household worker? My nanny wants to be paid weekly. Do I need to do that?
- How do I calculate overtime for my salaried nanny? What about compensation for occasional overnights?
- Am I required to offer my nanny benefits such as vacation time, sick time, or paid time off?
- We are hiring a live-in nanny. How do you figure her room and board for tax purposes?
- Our former nanny applied for unemployment benefits? She was fired due to poor attendence - will she get benefits?
- Can I pay my nanny on my business payroll?
Special Situations
- My nanny wants to take home $600 a week. What does that mean?
- How do we handle the taxes if we share a nanny with another family?
- My employee is not a legal resident. What should I do about employment taxes?
- Am I required to hire U.S. citizens?
- My domestic (nanny, elder care giver, housekeeper) wants to be treated as a "contractor." Can I do that?
- Do I have to pay taxes for the cleaning lady that comes weekly?
- What are my tax responsibilities with a temporary nanny?
- I am hiring a nanny who has a F-1 (J-1) Student Visa. Are there special rules?
- I gave my nanny a $2000 holiday bonus. Do I have to report that as wages? I would perfer it be a gift!
- How can I help my nanny build a tax-deferred retirement savings account?
- Our wonderful nanny will be leaving in September when our son begins full time school. How do we help her with a letter of recommendation?
Tax Breaks & Concerns
Download Free e-Book: Nanny
Payroll Quick Start Guide
What Clients Are Saying
Wonderful service staffed by nice people who enjoy dealing professionally with all-to-often less than thrilling payroll taxes. 4NannyTaxes provides a cost-effective service which delivers ... peace of mind with a smile
-Charles H., New York, NY Read More
Charitable Giving
Each year HomeWork Solutions Inc., donates a portion of our profits to worthy causes. For the past several years some of those funds have gone to food bank programs in the U.S. HomeWork Solutions' 2012 charitable giving supports The Gelardi GCM Member Support Fund and Eco/Café Haiti Project.
We are so pleased to be able to "give back" ... Learn more