w2 employee? RSS feed

Anonymous
If I take my kid to caregivers house and she watches my kid and her kid would she still be considered a w2 employee?

Currently I have a w2 nanny, she comes to my home and watches my kids exclusively.
Anonymous
Probably not. In this case, she would likely be considered self-employed, and you would have no tax obligations. However, she would, and you would need to make sure she fills out whatever paperwork is necessary so that you can get the child-care tax credit.
Anonymous
If you pay her over $1900, you do need to do a W-2. https://www.care.com/homepay/nanny-tax-guide
Anonymous
Anonymous wrote:If you pay her over $1900, you do need to do a W-2. https://www.care.com/homepay/nanny-tax-guide


That's true of a nanny who comes to you.

This is a home daycare with one child. The OP does not get to dictate where the work takes place, one of the "test" for a W2 employee. In this case, the nanny can still call herself whatever she wants, but she is self-employed for IRS purposes. The OP provides nothing in this case, just as with any daycare.
Anonymous
If it's a home daycare then there needs to be a license etc.
Anonymous
Anonymous wrote:
Anonymous wrote:If you pay her over $1900, you do need to do a W-2. https://www.care.com/homepay/nanny-tax-guide


That's true of a nanny who comes to you.

This is a home daycare with one child. The OP does not get to dictate where the work takes place, one of the "test" for a W2 employee. In this case, the nanny can still call herself whatever she wants, but she is self-employed for IRS purposes. The OP provides nothing in this case, just as with any daycare.


I see, makes sense to me then. What would you do in a situation for nannyshare that takes place in someone else's home and not yours?
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:If you pay her over $1900, you do need to do a W-2. https://www.care.com/homepay/nanny-tax-guide


That's true of a nanny who comes to you.

This is a home daycare with one child. The OP does not get to dictate where the work takes place, one of the "test" for a W2 employee. In this case, the nanny can still call herself whatever she wants, but she is self-employed for IRS purposes. The OP provides nothing in this case, just as with any daycare.


I see, makes sense to me then. What would you do in a situation for nannyshare that takes place in someone else's home and not yours?

Officially illegal. But, yes, lots of people still do it.
Anonymous
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:If you pay her over $1900, you do need to do a W-2. https://www.care.com/homepay/nanny-tax-guide


That's true of a nanny who comes to you.

This is a home daycare with one child. The OP does not get to dictate where the work takes place, one of the "test" for a W2 employee. In this case, the nanny can still call herself whatever she wants, but she is self-employed for IRS purposes. The OP provides nothing in this case, just as with any daycare.


I see, makes sense to me then. What would you do in a situation for nannyshare that takes place in someone else's home and not yours?


This is considered joint employment if the nanny is not also the parent of one child and owner of the home in which the care takes place. In that case, she gets a W2. Most people do separate W2s (1 per family), but you could also structure so that one family does the payroll and do one W2. Look up labor law about joint employment.

The difference is that in OP's case, the care is happening in the nanny's home, and the other child is the nanny's child. Very little about that set-up fits the "test" of a W2 employee.
Anonymous
OP here. Thank you for the responses, very helpful.
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