W2 question

[Anonymous]

We have a new nanny starting soon and have agreed to provide a w2 each year but we will not be doing her taxes for her (she will do herself). I'm having trouble finding information about how to do this. I was told my an aquaintenace, who I'm not comfortable asking, that this is what they do. Does anyone have any info to provide? Thanks in advance!

[Anonymous]

She can do her own federal and state withholding, but you still have to withhold her part of FICA taxes and pay your own part.

You can generate a W2 right on the SocialSecurity.gov website, and you can report/pay the FICA taxes on your personal income tax form once a year.

Google IRS publication 926 for all of the rules.

[Anonymous]

I would use a service, like Breedlove. I'm a tax lawyer and I don't even want to deal with it, so the $200/year fee is totally worth it.

[Anonymous]

Hmm, breedlove for us is 1000/year. That said, I still recommend them.

[Anonymous]

My boss uses quickbooks.

[Anonymous]

You have to do the Social Security and Unemployment taxes and give her the W2 and she will file and pay her income taxes. Please don't think you have no taxes to pay - Social Security must be reported and paid by the employer.

I also recommend a nanny payroll company - otherwise you have got to spend the time to get smart about DIW. We use Homework Solutions - its about $200 quarterly and worth it to me to have 'people' taking care of this.

[Anonymous]

I am a former nanny who regularly got paid through Breedlove and I have to agree that it is great. I received constant notification with just about everything (overtime, pay check available, hours, w2 and more). It was clear and consistent. I could access my stuff in case I wanted to print it and go apply for things.