How do we calculate nanny taxes?

[Anonymous]

Hi everyone,

We have just found a part-time nanny who is going to take care of my two children in the afternoons (16 hours perk week). I have a couple of questions:

1. How do we calculate nanny taxes? What are the taxes we should withhold from her paycheck, and what are the ones we are responsible for as an employer?

2. How often should we file taxes? Once in a quarter, or once a year? We live in DC.

3. Are we expected to pay her when we are out of town, or on a vacation?

Thank you so much in advance!

[Anonymous]

You will need a payroll software or service of some kind. We use Nanny Tax Prep and they do everything including all new hire paperwork, calculate taxes, file the state taxes, and prepare the annual W2. And they stay up to date with all the employment regulations so if something changes they alert us.

You can do it yourself on the internet, but it will be significantly more work..

Federal, social security, medicare withholdings - IRS.gov

For state income tax withholding, go to the gov website for the state where she lives. Same (I think) for state unemployment.

We withhold state and federal income (optional), ss, medicare (mandatory). You also have to pay separate state and fed unemployment taxes, and get a worker's comp policy.

Our nanny lives in MD and we have to file quarterly (service does it for us). Federal we file with our annual income taxes. Not sure what DC's schedule is for filing.

Quesiton 3 you should have discussed before you signed the contract..

[Anonymous]

Use homepay or GTM payroll services. each about $60/month but worth it!

[Anonymous]

Question 3. Yes, you should have worked that out beforehand.

Generally speaking, if you want to keep your nanny, you will not leave her in a lurch without pay.

[Anonymous]

IRS Publication No. 926 (Tax Guide for Household Employers) provides answers to most of the payroll and tax questions you will have. You will also need to determine whether DC requires you to carry workers' comp (in Maryland, workers' comp is required for household employers) and, if so, obtain a policy.

[Anonymous]

There There are numerous services that will do it for you, but gtm and home pay both have free calculators. Which you could use by yhemselves.

[Anonymous]

Why don't you really use the power of cloud programs or third-party software development? It is easier and cheaper than it seems.

[Anonymous]

HomeWork Solutions is a great company!

[Anonymous]

You don't need a payroll software. There are free calculators. to calculate your nanny's take home pay and what you will owe. After you do it once it'l lbe a piece of cake. Save yourself some money.

[Anonymous]

I can advise you as advised others to use the software to solve your problems. The company for custom software development will solve this problem and offer the best program for the goals. With a special request, you can also take into account the costs of paperwork, forms and other bureaucratic moments.