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Employer Issues
Reply to "Holiday gift in addition to bonus?"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]This is interesting. This is our first year with a nanny. I just assumed her bonus would be (and paid it) on the books. I'm surprised so many people do otherwise. [/quote] +1 Even more interesting are the people who give cash but then still report it on the books. We generally do direct deposit but I have written our nanny checks before for a few things and she just deposits from her phone. I think she would find me crazy if I handed her an envelope of cash, especially if I then told her we withheld taxes from it and it was on the books.[/quote] [b]Bonuses don't have taxes withheld, they go in a separate box on the W2, and the nanny will take care of the taxes on it.[/b][/quote] This is incorrect: bonuses paid to employees are considered taxable income and treated as wages by the IRS.[/quote]
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