First time employer - seeking advice for payroll and tax

[Anonymous]

We're about to hire a nanny and will be doing the whole process of hiring and paying her yourself (not using any payroll service).
Is anyone familiar with the process willing to helo and share some tips?
Many thanks for your help.
You can reach me at cindy.csa at gmail dot com

Cindy

[Anonymous]

Yeah. Hire a payroll service.

[Anonymous]

Intuit Household is $22/ month per employee. Its the least expensive service I found, and completely worth it.

[Anonymous]

You're going to need to register your own federal and state tax IDs as a household employer, not a business. You should also look into the required tax returns you will need to file monthly and/or quarterly (per your state's requirements) and the deadlines, as a household employer. At minimum, Social Security and Medicare taxes must be withheld from your employee's wages unless you are willing to pay them on her behalf, in addition to your own employer taxes (Social Security, Medicare, State and Federal Unemployment insurance). You will need to produce a W-2 to the employee if she is paid $1,900 or more in the year, and you will also need to produce and file a Schedule H with your own personal return as an employer. It can be extremely complex, and most people decide after they handle this process themselves to take the service route. GTM is highly recommended if you want it all taken care of for you, the right way.

[Anonymous]

Anonymous wrote:Intuit Household is $22/ month per employee. Its the least expensive service I found, and completely worth it.

Do you know if this works if the nanny works in DC and lives in Maryland? One person said no, and I want to confirm before I set everything up. (not op.)

[Anonymous]

It is not that hard to do yourself, honestly. I have been doing it for four years. I use Excel to keep track of taxes withheld on nanny's paycheck.

We do teh w-2, pay the state unemployment taxes and blah blah.