How do other familes deal with taxes with their nanny? We are hiring a part time nanny and not sure how to work the income taxes, etc.
Thanks for any advice!!
Hi Emily - Stephanie's blog post from awhile back might be helpful to you. http://www.ocmommies.com/profiles/blogs/before-you-decide-to-pay-your-
We use a payroll software by Intuit. Here is a link: http://payroll.intuit.com/ It is $25 a month (it was $20 when we signed up), but to me has been well worth it. It tells you when to pay taxes and even creates the forms for you. You can produce pay statements for your nanny and W2s at the end of the year. It even has direct deposit. I have found that it has taken much of the stress out of the whole process as it can be really confusing at first. I am sure that there are other similar option out there, but this one has worked for us. They offer a free trial, so you may want to check it out. If you have any other question feel free to ask me - I have been doing it for about a year and a half.
I would contact Jeremy ( I will see if I can find a link to his profile) but he owns "college nannies and tutors" and OCM sponsor, and his website talks about managing taxes for the nannies and the families, so he would probably be very knowledgeable about this.
You can use a payroll service, which would only cost you about $70 a month. The nanny would get paid every other week and you just tell them how many hours and the pay, five minutes later you're done. They would take care of everything for you, including quarterly reports and end of the year. By the time you do it yourself, it's worth the extra money. Call Jim Johansen at 714-329-8085 or e-mail him at email@example.com , he's been doing this for 30 years, I will tell him to expect your call.
If you need any other suggestions please let me know. One other suggestion is you might want to consult Bob from Legally Nanny as there are a lot of laws you need to consider when hiring a nanny. Feel free to give me or e-mail me if I can help in any other way. Congratulations!
thanks everyone! :)