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Reply to "How to structure payroll and issue paychecks for a nanny share"
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[quote=Anonymous]We also do it separately, but as PP said you do need to make sure you're calculating withholding based on full salary (which also includes any outside over-the-table jobs nanny may have)--you may need to withhold at a different rate. Left to its own devices, the system the services use may look at what it thinks is the full salary and decide nanny won't need to pay taxes or is in a lower tax bracket than she actually is. We do a flat withholding amount to make sure enough gets withheld at the end of the year that our nanny won't owe penalties. Our nanny is also married and files taxes jointly, so that affected things as well.[/quote]
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