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Employer Issues
Reply to "Give Nanny 1099? Is this legal?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]You don't have to send them quarterly for domestic employees. You can pay them all on your personal income tax in April.[/quote] Hmm are you sure because 4nannytaxes.com seems to differ from what you are saying. The employer IS responsible for withholding the amount from the paychecks. If they don't do this throughout the year, it seems a little ridiculous that they would go back to the employee and say "oops" we need that money back at the end of the year. The IRS won't go after the nanny, but the family if these taxes are not paid.Getting a little off track of this thread, but families please know your responsibilities![/quote] The family has to withhold FICA, but they don't have to pay it to the IRS quarterly. It becomes part of their total tax bill which they can pay at the end of the year. Of course, if your tax bill is large enough, you will owe penalties so you effectively need to either pay it quarterly or adjust your withholding so it comes out of your paycheck.[/quote] This is correct. We get a large refund each year because of ciecumstance which will not allow us to adjust our withholding in advance, so it just comes out of that (we get a smaller refund). So, basically, we don't pay her that portion of FICA all year round, then we pay it in one lump sum to the IRS. We also withhold federal taxes for her and do the same thing.[/quote]
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