1099 or w-2 form
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Anonymous
| Which one is better for nannies to use? Does it even matter? I still don't really understand taxes. I am going to begin my first on the books nanny job. They said 1099, but I think it should be w-2. Thanks |
Anonymous
|
Law says W-2. They need to read IRS publication 926, for domestic employers: https://www.irs.gov/uac/about-publication-926
A 1099 will cost you additional money. It is important to you that they do this properly. |
Anonymous
| Per PP, it needs to be a Form W-2. They have to pay the employer share of social security and Medicare taxes (7.65%) and withhold your share (7.65%) from your wages. You can also request that they withhold income tax if you provide them with Form W-4. |
Anonymous
This. It's the law. I'm an mb and we have an on the books nanny and withhold taxes and do w2 based on what she entered in her w4. We just did our taxes and yes it was a chunk more to pay our share and to pay the state taxes as well (quarterly). But it's worth it to me and hopefully the many will get a good tax return this year and get her social security when she is eligible. |
Anonymous
| W2 |
Anonymous
| Hi, nanny here. It's illegal to fill out a 1099 form. A 1099 form states that you are an independent contractor, own your own business and set your own Horus. Obviously that's not the case and if you do file a 1099 your family can actually get in trouble and fined. Also a 1099 means you keep all your own tax money and you would of had to save up for the year of what you have to pay. So that means not only do you have to keep track of the taxes but you also have to pay the high tax fee. Either way it's illegal and make sure you tell them it is. I had a family try to do this with me and I told them. I turned down a few jobs because they wanted to try to 1099 me. I know all ll this info because my tax lady told me when I tried to do a 1099. Tell them they have to file taxes for you. Hopefully they will want to because it's a ton of money. If not just do it off the books. Good luck! |
Anonymous
|
Per the IRS nannies are household employees and must be issued a W2. Below is the link to IRS Publication 926: Household Employer's Tax Guide
https://www.irs.gov/uac/about-publication-926 |
Anonymous
| The INA has a bunch of specialty nanny members who are in fact 1099 self-employed nannies according to the law. |
Anonymous
What does this have to do with anything? OP would know if she were one of the exceptions. She doesn't even know the basic law at this point! |
Anonymous
I was correcting all the posters who claimed that a nanny can never be 1099. They are wrong. |