Accountant says taxes and EIN aren't required
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Anonymous
| The guy that does my taxes told me yesterday that I don't need to file for an EIN and I don't have to withhold taxes. I can just wait until tax time and claim the expense then. Does this sound right to you? I assume he wouldn't lie to me about it as he is also responsible for filing my taxes. |
Anonymous
| OP here for extra info: I am looking to employ a nanny |
Anonymous
| What will be her maximum gross wages per quarter? |
Anonymous
| You can pay quarterly or at the end of the year, depending how much the nanny is making. We pay quarterly. |
Anonymous
|
1. You do not need an EIN. You can use your SS#. I got an EIN because it seemed easier.
2. You DO need to withhold her portion of FICA taxes (social security and medicare), and let her know if you will or will not be withholding federal and state income taxes. 3. You do need to pay unemployment insurance, which in many states is a quarterly payment. This does not come out of her check. You pay it on top of her pay. 4. You can pay the FICA taxes (her portion and your portion), as well as federal unemployment insurance on your personal return at the end of the year. |
Anonymous
|
See IRS Publication 926 - you do need an EIN and they talk about state tax issues there too.
Your "guy" is steering you wrong. https://www.irs.gov/uac/About-Publication-926 |
Anonymous
|
I think he meant federal & state w/h - that is NOT a requirement.
It is also not a requirement to withhold fica but what that means is you as the employer need to pay both shares and at year end her salary needs to be grossed up for this (the fact that you aren't withholding her share of fica). CPA and MB |
Anonymous
Absolutely fantastic if you do that, OP! If your accountant told you that you can give the nanny a 1099, he's misinformed. |