Household and Nanny Payroll Processing and Tax Reporting
We are household employment and nanny payroll processing professionals. There is a lot of paperwork, tax filings, and deadlines that have to be met. You hired your household employee so that you would have the ability to spend more time with your loved ones. You did not hire your nanny so that you would spend your time processing paperwork. We are available to answer your questions and you will always speak to an nanny payroll professional.
Who is a Household Employee?
According to the Internal Revenue Services a household employee is someone who is paid to perform duties around the home. A household employee’s duties are controlled by the homeowner. They are provided with the necessary tool required to perform their job. They are directed by the homeowner as to what there work schedule will be. Household employee include a nanny, caregivers, personal assistants, housekeepers as well as personal chefs. They household employees must be paid with a paycheck and must receive a W-2 at the end of the year. It is incorrect to issue a household employee a Form 1099. Household employees are not independent contractors.
What Taxes is Household Employer Required to Pay?
A Household Employer is required to withhold Medicare and Social Security taxes from the employees wage. The employer is responsible for matching the Medicare and Social Security tax. The employer is also libel for federal and state unemployment taxes. The Employer most submit quarterly reports to the state for unemployment taxes, and annual produce W-2 and W-3.