Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

You didn't get your taxes paid by your employers. They withheld your taxes from your paycheck and paid them directly to IRS. These taxes came out of your pay. They weren't a perk from your employers.

They withheld nothing from my paycheck I was paid 20 per hr for 40 hrs a week. I was given 800 in cash every week. After I did my taxes I figured up what I owed and they paid it. When they gave me the W2 it had ss and Medicaid withholdings already on it. I never paid that, they did. What I owed to the Feds and state they paid. They gave me cash to cover it and I wrote a check to the IRS.

Do you understand the concept of gross and net income? The fact that you received your income in "net" form doesn't mean your income didn't exist in gross form originally.

You should also know that you broke the law if you didn't report what they gave you for taxes as income. Because that's income to you and you owe taxes on it.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

You didn't get your taxes paid by your employers. They withheld your taxes from your paycheck and paid them directly to IRS. These taxes came out of your pay. They weren't a perk from your employers.

Do you always act so sure of yourself when you don't know what you're talking about?

New poster here. Don't be so obnoxious, nanny poster. Yes, you had a nice perk and yes, the employer absolutely withheld taxes from your pay. You just don't feel like they did because you negotiated net pay rather than gross pay. Your actual gross compensation is higher than $20 per hour

Anonymous wrote:

Anonymous wrote:I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

You didn't get your taxes paid by your employers. They withheld your taxes from your paycheck and paid them directly to IRS. These taxes came out of your pay. They weren't a perk from your employers.

Do you always act so sure of yourself when you don't know what you're talking about?

Anonymous wrote:People always get confused about this. When a nanny says that the employer paid her taxes, what is usually meant (though not always) is that the employer withheld the nanny's taxes for her... NOT that the employer "paid" the nanny's taxes (since the money is still being withheld from her gross income, resulting in her "net" or take-home pay). This may feel like the employer paying the taxes since the nanny may not owe anything come tax time, but it's not technically paying the nanny's taxes... it is withholding them. A PP was correct that if you, in fact, paid your nanny's taxes (i.e., paid her the gross salary without any withholdings AND then paid whatever money she owed in taxes come tax time) this is technically more taxable income to your nanny and should be reported as such.

+1

I would suggest hiring a payroll service to at least get you set up so that taxes and everything are done properly and on the books. And offering withholding is wonderful, but not necessary.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

You didn't get your taxes paid by your employers. They withheld your taxes from your paycheck and paid them directly to IRS. These taxes came out of your pay. They weren't a perk from your employers.

They withheld nothing from my paycheck I was paid 20 per hr for 40 hrs a week. I was given 800 in cash every week. After I did my taxes I figured up what I owed and they paid it. When they gave me the W2 it had ss and Medicaid withholdings already on it. I never paid that, they did. What I owed to the Feds and state they paid. They gave me cash to cover it and I wrote a check to the IRS.

So sorry responded to the wrong one oops

Anonymous wrote:

Anonymous wrote:I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

You didn't get your taxes paid by your employers. They withheld your taxes from your paycheck and paid them directly to IRS. These taxes came out of your pay. They weren't a perk from your employers.

They withheld nothing from my paycheck I was paid 20 per hr for 40 hrs a week. I was given 800 in cash every week. After I did my taxes I figured up what I owed and they paid it. When they gave me the W2 it had ss and Medicaid withholdings already on it. I never paid that, they did. What I owed to the Feds and state they paid. They gave me cash to cover it and I wrote a check to the IRS.

Anonymous wrote:People always get confused about this. When a nanny says that the employer paid her taxes, what is usually meant (though not always) is that the employer withheld the nanny's taxes for her... NOT that the employer "paid" the nanny's taxes (since the money is still being withheld from her gross income, resulting in her "net" or take-home pay). This may feel like the employer paying the taxes since the nanny may not owe anything come tax time, but it's not technically paying the nanny's taxes... it is withholding them. A PP was correct that if you, in fact, paid your nanny's taxes (i.e., paid her the gross salary without any withholdings AND then paid whatever money she owed in taxes come tax time) this is technically more taxable income to your nanny and should be reported as such.

I 2nd this. I would highly recommend getting a payroll service, at least for the first year. They will get all your forms filed with the IRS and make sure you are doing everything correctly. Also make sure she is agreeable to what her take home pay will be. A lot of nannies (as demonstrated here) don't really have any idea whats entailed in withholding taxes, so you don't want her to be surprised/unhappy when she gets her paycheck.

OP, you will need to clarify with your candidate what she means by "taxes." There are two sorts of taxes: income taxes (federal and state), and payroll taxes (FICA/Medicare). The employee is solely liable for income taxes. The employer and employee each contribute a share of payroll taxes -- the employee's share of payroll taxes is usually withheld by the employer from each paycheck and then remitted to the feds quarterly via estimated taxes. Household employers are not required to withhold the employee's income taxes (state/fed) from their checks, but most who are paying on the books do so (they then pay the withheld amounts to the proper state and fed authorities).

That said, some household employers may ALSO actually pay their nanny's share of payroll taxes and/or pay their nanny's income taxes (state or fed). In either of these cases, since the employer is paying something on behalf of the employee, the amount paid by the employer is treated as additional income -- and the employer (and employee) actually owe payroll taxes on THAT additional income as well. For these reasons, as well as others, when we employed a nanny we did not pay her share of payroll taxes or make any contribution to her income taxes.

I suggest reading IRS Publication No. 926, the Tax Guide for Household Employers. It is pretty helpful. I also suggest having a written contract with your nanny (translated into her native language as necessary), so that both of you are clear as to how the relationship will work and can resolve issues ahead of time. Best of luck.

Anonymous wrote:I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

You didn't get your taxes paid by your employers. They withheld your taxes from your paycheck and paid them directly to IRS. These taxes came out of your pay. They weren't a perk from your employers.

People always get confused about this. When a nanny says that the employer paid her taxes, what is usually meant (though not always) is that the employer withheld the nanny's taxes for her... NOT that the employer "paid" the nanny's taxes (since the money is still being withheld from her gross income, resulting in her "net" or take-home pay). This may feel like the employer paying the taxes since the nanny may not owe anything come tax time, but it's not technically paying the nanny's taxes... it is withholding them. A PP was correct that if you, in fact, paid your nanny's taxes (i.e., paid her the gross salary without any withholdings AND then paid whatever money she owed in taxes come tax time) this is technically more taxable income to your nanny and should be reported as such.

I've had my taxes paid by my employers through using a payroll service. I told them I needed to take home $x/week and everything worked backwards from there. And I'll get a tax refund this year also.

Keep in mind that if someone else pays your taxes, that is income to you (and it's taxable)! You have to pay the employer's share of FICA and SS, and withhold the employee's share to pay over.

I have had my employers pay my taxes. After I filled my taxes I owed X amount to the IRS and state and they paid it. Just a perk from my employer. This however is not common.

OP, no one can taxes for their nanny because you have no idea what her withholdings, itemizations and other tax details are. If you are paying on the books, you must withhold her and your portion of FICA and SS. Beyond that, you can offer an option of withholding federal and state income taxes on nanny's behalf; alternatively, she can pay them herself.

There is no such thing as paying 50% or 100% of someone's taxes simply because you have no way of knowing the amount of her tax liability.

FTM here. We are going to employ a nanny. We found a great candidate and she said that her previous employers paid her taxes. We have some language barriers so I'm not sure if we have agreed to the same thing. Do folks out there pay 50/50 of the taxes or do you pay 100% of the taxes.