| as you treat your nanny like family, hiring someone to | | | | week, then her taxes are your liability. Nanny payroll, in |
| perform childcare services makes you an employer | | | | this scenario, includes printing of W2 and W3 forms |
| and the nanny, an employee. In that sense, a nanny | | | | and submitting to the Federal Internal Revenue. |
| payroll is necessary to ensure can pay her income | | | | Withholding employee taxes |
| and withholding tax, as the law requires. As an | | | | Your nanny's withholding taxes are usually within the |
| employer, this is your responsibility. | | | | range of 15-20% of her gross wages, and include half |
| However, don’t' think of nanny payroll as too big | | | | of Medicare and Social Security, federal income taxes, |
| a deal that turns you off from getting a nanny. Nanny | | | | and state income taxes (if applicable). Household |
| support has its crucial role to play especially that both | | | | employers are only allowed to withhold taxes after |
| parents now have jobs to sustain the economic needs | | | | each pay period. |
| of the family, and because mothers are now given | | | | Overtime pays should also be included in the nanny |
| more opportunities than were given to them decades | | | | payroll, and is supposedly stipulated in the contract. The |
| ago. | | | | law mandates that overtime rates are equivalent to |
| You don’t need an accounting degree to be | | | | the 1.5 hours pay of an employee. As an employer, |
| able to account nanny payroll. Many families now use | | | | you need to respect your nanny's off times or |
| a nanny payroll software to compute the | | | | compensate overtimes, as you personally know how |
| compensation and taxes of their nanny. This all | | | | demanding childcare (especially of young children) can |
| depends on you. The point is you can give a paycheck | | | | be. Note, however, that live-in nannies do not have to |
| on time and pay the appropriate taxes that comply | | | | be compensated for overtime but are supposed to be |
| with Nanny Tax Laws. | | | | given equal pay. |
| Independent contractor or employee | | | | It may help to research about the details of nanny |
| There are times when the nanny (as an independent | | | | payroll and tax process, as well as your legal |
| contractor) reserves the responsibility to pay her | | | | obligations as the employer. Information on labor laws, |
| taxes, if and only if, you don't control the amount of | | | | including tax gross pay, net pay, employer's state and |
| work of a person and she provides her tools and | | | | federal tax liabilities, and so on must be obtained |
| offers services to the general populace. If the nanny | | | | before you actually find a nanny. |
| lives and works for you for more than 30 hours per | | | | |