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Reply to "Confused about Nanny Taxes"
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[quote=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.[/quote]
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