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Employer Issues
Reply to "Still so confused over taxes- help!"
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[quote=Anonymous][quote=Anonymous]OP - it does not sound that you are paying her share of taxes. And it make sense you are paying some of the taxes. you are legally liable for your share of FICA and unemployment. Since you asked - I pay my nanny's share of FICA. I give her a bonus in the end of the year which covers about 50% of her income tax.[/quote] I don't think you can say you pay your nanny's share of the taxes. you can say that you give her a bonus in an amount that corresponds to 50% of her income tax. this does not mean that you are "covering" 50% of you nanny taxes. when you give her a bonus, she owes taxes on that money too, like any other worker who gets an end of the year bonus (unless you pay the bonus under the table, which is illegal and means that you and your nanny are braking the law)[/quote]
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