The nanny tax: What household employers need to know

The nanny tax: What household employers need to know

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nanny tax

The nanny tax: What household employers need to know

Hiring household help, whether you employ a nanny, housekeeper or gardener, can significantly ease the burden of childcare and daily chores. However, as a household employer, it’s critical to understand your tax obligations, commonly called the “nanny tax.” If you hire a household employee who isn’t an independent contractor, you may be liable for federal income tax and other taxes (including state tax obligations).
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You may be liable for “nanny tax” for all types of domestic workers

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nanny tax

You’ve probably heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations.

Continue Reading: You may be liable for “nanny tax” for all types of domestic workers

More parents may owe “nanny tax” this year, due to COVID-19

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nanny tax

In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations.

Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners or others who aren’t independent contractors.
Continue Reading: More parents may owe “nanny tax” this year, due to COVID-19