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I don't know enough to speak to your specific circumstances OP but might the following apply to you? Please see the 3rd Question Q. Why could the wages in Box 1 of Form W-2 be greater than those in Boxes 3 & 5?
http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/yefaq/
http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/yefaq/
NisforNanny wrote:Try the free tax withholding calculator at 4nannytaxes.com, but I am guessing that your employer has started withholding all taxes (income, SS, unemployment) as the number you mention is pretty close to that for someone single and and claiming zero deductions - exact amount depends on where you live. Obviously if your employer is going to start withholding taxes or more taxes (I live in MA, where my employer is only required to withhold payroll taxes and not income) there should have been a conversation and paperwork.
I would definitely ask, as you should get either your money or written confirmation about what taxes are being withheld.
I agree, sounds like she is deducting taxes. Odd that you would not have had a discussion about this first though. If you are in Montgomery County that is a reasonable net (take home) based on Single, zero exemptions.
Calculations Based On:
Weekly Gross Wages: $200.00
Pay Frequency: Weekly
Filing Status: Single
Withholding Allowances: 0
State: MD,
Montgomery County
Weekly Results:
Employee Gross Wages: $200.00
Gross subject to IT: $200.00
Social Security: ($12.40)
Medicare: ($2.90)
Federal Withholding (2013): ($15.80)
MD State Tax : ($13.51)
Expense Reimbursement: $0.00
Employee Net Pay: $155.39
Employer Obligations:
Employee Gross Wages: $200.00
Social Security Tax (Employer): $12.40
Medicare Tax (Employer): $2.90
Unemployment Taxes: $6.73
Assumes $350 expense per employee per year. Your rates may vary.
Estimated Expense per Pay Period: $222.03
Tax Calculator Provided by Home/Work Solutions, Your Nanny Tax Specialists
Call toll-free 1-800-NaniTax (800-626-4829)
Rates Last Updated 1/4/2013
Anonymous wrote:No its not legally required.
This is absolutely correct.
You must report the wages subject to Federal and State income taxes on her W-2 form. If you withheld zero, then that is what you enter in the boxes for Federal and State income tax withholding.
Anonymous wrote:This question was just asked -- look for the thread on reimbursable expenses.
Without receipts, this is just more income. You can probably estimate mileage and maybe some food, but unless you can find IRS rules that agree to this, you need to tax it.
FWIW, I do the same -- $25 twice a month. But, I do tax it like regular income. I just picked a number that I knew would be slightly more than she is likely to ever spend.
Exactly right. See: http://www.info.4nannytaxes.com/blog-0/bid/90519/Household-Employees-Guidance-on-Reimbursement-of-Expenses
OP you have specific obligations to collect and retain documentation for the expenses you are reimbursing. If you don't do that, this must be considered taxable income to the employee.
See the blog post linked below for more details:
http://www.info.4nannytaxes.com/blog-0/bid/90519/Household-Employees-Guidance-on-Reimbursement-of-Expenses
See the blog post linked below for more details:
http://www.info.4nannytaxes.com/blog-0/bid/90519/Household-Employees-Guidance-on-Reimbursement-of-Expenses
No, not at all 16:53. For two years, 2011 and 2012 the Social Security tax rate you paid went down from 6.2% to 4.2% (It never went down for your employer). That temporary rate change was called the "payroll tax holiday" (you can google it), and it expired, so the rate went back up.
Everyone always had to pay taxes, just the amount changed.
Everyone always had to pay taxes, just the amount changed.
Why a nanny wants to be paid legally: http://www.4nannytaxes.com/index.cfm/resources/10-tips-series/pay-nanny-legally/
Employer risks: http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/penalties-for-non-compliance/
I of course have a commercial interest in the subject, in the mode of full disclosure
Employer risks: http://www.4nannytaxes.com/index.cfm/resources/news-and-updates/penalties-for-non-compliance/
I of course have a commercial interest in the subject, in the mode of full disclosure
Did you have any quarters in 2011 or 2012 that were over $1000? If the answer is yes, you need to file and pay unemployment taxes on the wages you paid even in the quarters under $1000. You can only opt out after a full calendar year of payrolls all under $1000/quarter.
Ditto for FUTA.
Ditto for FUTA.
Everyone's payroll withholding is going up, primarily due to the expiration of the so-called "Payroll Tax Holiday."
Our calculator tool is fully updated with all 2013 tax rates. Our blog post has a quick FAQ as well as a link to the calculator tool: http://www.info.4nannytaxes.com/blog-0/bid/93716/2013-Nanny-Payroll-Tax-Calculator-Fully-Updated
Happy 2013!
Our calculator tool is fully updated with all 2013 tax rates. Our blog post has a quick FAQ as well as a link to the calculator tool: http://www.info.4nannytaxes.com/blog-0/bid/93716/2013-Nanny-Payroll-Tax-Calculator-Fully-Updated
Happy 2013!
Everyone's paycheck calculations are changing, primarily as a result of the expiration of the so-called "Payroll Tax Holiday."
Our online calculator is fully updated with all 2013 rates! There is a quick FAQ about the changes, with a link to the calculator, here: http://www.info.4nannytaxes.com/blog-0/bid/93716/2013-Nanny-Payroll-Tax-Calculator-Fully-Updated
Happy 2013!
Our online calculator is fully updated with all 2013 rates! There is a quick FAQ about the changes, with a link to the calculator, here: http://www.info.4nannytaxes.com/blog-0/bid/93716/2013-Nanny-Payroll-Tax-Calculator-Fully-Updated
Happy 2013!
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