Part-time nanny (15 hrs/wk) - on or off the books
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Anonymous
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OP, you are required to withhold FICA and file taxes if: a. you pay more than $1000 per quarter or b. pay more than $1900 per year.
15 hours * $7.25 (federal minimum wage, not that you could find someone competent who would stay long-term at that rate)= $108.75 (minimum weekly pay) So, yearly first: $1900/$108.75=17.47 If the nanny only worked 17 weeks, you don't have to do taxes, 18 weeks per year and you have to do taxes Now, quarterly: $1000/$108.75=9.20 If the nanny works 10 weeks in any one quarter, you have to file, even if it's a temp position. Now, since it's far more likely that you will be paying $15+ per hour, halve those numbers. That means that you have to file if the nanny works 5 weeks in any quarter or 9 weeks in any year. If you choose not to withhold FICA, and either provide a 1099 or don't provide any paperwork, the nanny can still file. Because it is the EMPLOYER'S responsibility to withhold, the assumption is that you did withhold from whatever amount the nanny was paid, so you would then be responsible for paying both the employer AND employee portions, as well as the penalty fees. Is it really worth it to you to save a few bucks now and possibly have to pay double plus fees later? |
Anonymous
And you don't want your employers to pay taxes? How old are you? |
Anonymous
They pay more than enough taxes. I want everything I earned. I'm 31. |