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[Post New]01/15/2014 09:22
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Anonymous
We're thinking of hiring a private nanny (for the first time). We understood that we'd be witholding for her social seciruty and medicaid amounts, but she told us that she prefers we don't withold anything, but will give us a statement each month when she sends funds to the IRS for taxes that way she can also claim driving miles on her taxes.

Does this make any sense? How do you pay for your nanny? Also, do you pay her weekly or bi-monthly?
[Post New]01/15/2014 09:31
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Anonymous
Most nannies prefer to receive their compensation sooner rather than later, so they get paid weekly. I know of two who get paid in advance, at the beginning of each month.

Your nanny's plan for her taxes sounds a bit off. So you need to make sure that you pay your share of all obligations (IRS, state taxes, etc).

[Post New]01/15/2014 09:34
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Anonymous
Anonymous wrote:Most nannies prefer to receive their compensation sooner rather than later, so they get paid weekly. I know of two who get paid in advance, at the beginning of each month.

Your nanny's plan for her taxes sounds a bit off. So you need to make sure that you pay your share of all obligations (IRS, state taxes, etc).



OP here, thanks so we'll setup a weekly pay. How do I make sure that we pay our share of taxes? Many thanks! As you can see I'm totally new to all of this.
[Post New]01/15/2014 09:49
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Anonymous
OP, the best place to start is with IRS Publication No. 926, the guide for household employers. You'll need to get an employer ID with the federal govt, and also register with your local govt. The IRS publication helps you to understand the steps involved in withholding and paying employment taxes and income taxes (and the difference between the two). Good luck - it's not too difficult after you get it all set up.
[Post New]01/15/2014 13:00
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Anonymous
Anonymous wrote:We're thinking of hiring a private nanny (for the first time). We understood that we'd be witholding for her social seciruty and medicaid amounts, but she told us that she prefers we don't withold anything, but will give us a statement each month when she sends funds to the IRS for taxes that way she can also claim driving miles on her taxes.

Does this make any sense? How do you pay for your nanny? Also, do you pay her weekly or bi-monthly?

It's not up to the nanny to tell you not to withhold SS and Medicaid, as these are employer responsibilities. You have an option of withholding or not withholding income taxes, as these are the nanny's liability. She can claim miles and other deductions on her taxes as employer-unreimbursed expenses, this has nothing to do with what you withhold.

Make absolutely certain that she is clear you will pay on the books.
[Post New]01/15/2014 13:11
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Anonymous
I would also offer to reimburse her for miles driven on the job (not commuting miles) Assuming she was going to only deduct legally allowed miles, she's much better off being reimbursed at the IRS rate.
[Post New]01/15/2014 14:45
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Anonymous
You MUST withhold SS and medicaid. A portion of it comes out of your pocket, and a portion of it comes out of her wages. You must withhold BOTH portions. If you do not, you will be on the hook for your share as well as hers.

You also must pay unemployment insurance.

The only things that are optional are the state and federal income tax withholdings. 100% of those come out of her wages, and it is up to her whether you withhold them or not.
[Post New]01/15/2014 14:46
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Anonymous
14:45 again. Take a look at your own paycheck stub. "Nanny taxes" are no different, save for any withholdings for health insurance, 401ks, etc.

There is nothing different about "nanny taxes" and regular employment taxes.
[Post New]01/16/2014 07:40
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Anonymous
OP - best money we spent was to outsource the tax stuff for the first year. Then you are all set up Md have a template to follow. So that.
[Post New]01/16/2014 11:24
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Anonymous
Anonymous wrote:OP - best money we spent was to outsource the tax stuff for the first year. Then you are all set up Md have a template to follow. So that.


Since we're new to this, I'll take your advice. Can you please recommend a good and reasonable com[any to use?
[Post New]01/16/2014 11:48
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Anonymous
NP here but I agree with 7:40. We have used Breedlove, but there are several others that provide the same services. Breedlove staff have been extremely responsive and knowledgeable - I've been very pleased with the service. It's been a great stress reliever to have all of the taxes and payroll handled professionally. You pay for the service, of course, but it is money well-spent in our opinion. They would definitely help you figure out the ways you can handle payroll that are legal but might still give your nanny some level of control over her side of the withholding process. They will also be available to speak with her directly, which can be very helpful.

Good luck!
[Post New]01/16/2014 13:04
quote
webbkathy

Member Offline
Anonymous wrote:
Anonymous wrote:We're thinking of hiring a private nanny (for the first time). We understood that we'd be witholding for her social seciruty and medicaid amounts, but she told us that she prefers we don't withold anything, but will give us a statement each month when she sends funds to the IRS for taxes that way she can also claim driving miles on her taxes.

Does this make any sense? How do you pay for your nanny? Also, do you pay her weekly or bi-monthly?

It's not up to the nanny to tell you not to withhold SS and Medicaid, as these are employer responsibilities. You have an option of withholding or not withholding income taxes, as these are the nanny's liability. She can claim miles and other deductions on her taxes as employer-unreimbursed expenses, this has nothing to do with what you withhold.

Make absolutely certain that she is clear you will pay on the books.


This is absolutely correct OP.
[Post New]01/17/2014 11:37
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Anonymous
webbkathy wrote:
Anonymous wrote:
Anonymous wrote:We're thinking of hiring a private nanny (for the first time). We understood that we'd be witholding for her social seciruty and medicaid amounts, but she told us that she prefers we don't withold anything, but will give us a statement each month when she sends funds to the IRS for taxes that way she can also claim driving miles on her taxes.

Does this make any sense? How do you pay for your nanny? Also, do you pay her weekly or bi-monthly?

It's not up to the nanny to tell you not to withhold SS and Medicaid, as these are employer responsibilities. You have an option of withholding or not withholding income taxes, as these are the nanny's liability. She can claim miles and other deductions on her taxes as employer-unreimbursed expenses, this has nothing to do with what you withhold.

Make absolutely certain that she is clear you will pay on the books.


This is absolutely correct OP.

It better be, you guys counseled me on this

Kathy, by the way, there was a debate here last week on whether the minimum wage requirement applies to EACH parent in the nanny share (meaning each employer must pay at least a minimum wage), or BOTH of them (meaning only the total rate should be minimum wage or more.) The law seems to say only the total rate counts. Can you weigh in on this, to settle the debate once and for all?
[Post New]01/17/2014 13:24
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Anonymous
If the law is not clear, I don't know that anyone can settle the debate until it goes before the court.
[Post New]01/17/2014 15:37
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Anonymous
The law is extremely clear and multiple links to it have been posted.
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