Anonymous
05/14/2014 17:50
Subject: Re:Basic employer tax questions
Homework Solutions (our tax service) has a bunch of really helpful calculators and articles on their web site that you don't have to pay to read/use. http://www.4nannytaxes.com/
nannydebsays
05/14/2014 15:04
Subject: Basic employer tax questions
OP, the figure I have generally heard is that employer taxes come to about 10% of the nanny's wages. So if you pay nanny $1000/week, your tax liability would be around $100/week.
Anonymous
05/13/2014 16:57
Subject: Basic employer tax questions
Anonymous wrote:At this point, we're just trying to estimate the full cost of employing a nanny before we ultimately decide how to go. So, far I've been able to find detailed information on unemployment tax, SSI & Medicare tax, as well as the state-specific income withholding requirements. But I can not find the federal income info - I found something that said the employer is not required, but may if requested, withhold federal income tax. Does this mean the employer doesn't owe any portion of income taxes on the nanny? I realize this is a dumb question and of course I will consult a more formal source before proceeding, but right now we're building a cost estimate, so if any of you know, that would be helpful. Thank you!
It's an easy question. No, you don't owe any portion of the nanny's income tax (either state or federal). Withholding is optional on both sides, reduces the nanny's net salary, and is paid 100% to the IRS (either rolled into your own withholding or as extra quarterly payments)
There is a federal unemployment tax we calculate every year when we do our taxes, but it usually comes out to just a few hundred more dollar.
Anonymous
05/13/2014 16:41
Subject: Basic employer tax questions
At this point, we're just trying to estimate the full cost of employing a nanny before we ultimately decide how to go. So, far I've been able to find detailed information on unemployment tax, SSI & Medicare tax, as well as the state-specific income withholding requirements. But I can not find the federal income info - I found something that said the employer is not required, but may if requested, withhold federal income tax. Does this mean the employer doesn't owe any portion of income taxes on the nanny? I realize this is a dumb question and of course I will consult a more formal source before proceeding, but right now we're building a cost estimate, so if any of you know, that would be helpful. Thank you!