Anonymous
10/24/2016 15:45
Subject: Taxes for Dummies -- please help with SS question
Anonymous wrote:Please search. Also read IRS publication 926, which explains all of the rules pertaining to domestic employers.
Current FICA taxes (SS and Medicare) are 15.3%. Typically, the employee (your nanny) pays half and you pay half. Your half is ON TOP OF what you pay her. Her half is deducted from her pay check (so, 6.2% for SS, and 1.45% for Medicare).
There is an option for you to pay it all, but most people do not do this. There is no option for her to pay it all. You must pay at least half.
You will also need to pay unemployment insurance (state and federal). You can pay your federal UI and your portion of the FICA taxes on your personal return before April 15. You will need to set up an account in your state for state unemployment insurance.
I would only add that the way the nanny "pays" for her share of SS is via deductions that you make.
I second the suggestion for a payroll company. We have used Homework Solutions for almost 3 years. When we changed nannies she wanted to know her take home and they provided a detailed breakdown with just a phone call.
Anonymous
10/24/2016 14:42
Subject: Taxes for Dummies -- please help with SS question
If you plan to use a payroll service (or accountant) they can help you with all of these questions and details.
I use Breedlove (Homepay) and they've been great but there are many others like that. Terrifically helpful for someone for whom this kind of hiring is an unknown.
Good luck!
I use Breedlove (Homepay) and they've been great but there are many others like that. Terrifically helpful for someone for whom this kind of hiring is an unknown.
Good luck!
Anonymous
10/24/2016 14:16
Subject: Taxes for Dummies -- please help with SS question
Please search. Also read IRS publication 926, which explains all of the rules pertaining to domestic employers.
Current FICA taxes (SS and Medicare) are 15.3%. Typically, the employee (your nanny) pays half and you pay half. Your half is ON TOP OF what you pay her. Her half is deducted from her pay check (so, 6.2% for SS, and 1.45% for Medicare).
There is an option for you to pay it all, but most people do not do this. There is no option for her to pay it all. You must pay at least half.
You will also need to pay unemployment insurance (state and federal). You can pay your federal UI and your portion of the FICA taxes on your personal return before April 15. You will need to set up an account in your state for state unemployment insurance.
Current FICA taxes (SS and Medicare) are 15.3%. Typically, the employee (your nanny) pays half and you pay half. Your half is ON TOP OF what you pay her. Her half is deducted from her pay check (so, 6.2% for SS, and 1.45% for Medicare).
There is an option for you to pay it all, but most people do not do this. There is no option for her to pay it all. You must pay at least half.
You will also need to pay unemployment insurance (state and federal). You can pay your federal UI and your portion of the FICA taxes on your personal return before April 15. You will need to set up an account in your state for state unemployment insurance.
Anonymous
10/24/2016 13:36
Subject: Taxes for Dummies -- please help with SS question
I made an on-the-books offer to a nanny today for a full-time job at $15/hour GROSS. The nanny started asking so many questions mainly about whether I'd pay half of her SS and then she would pay the other half of her SS. I am so confused. Can someone please explain? A basic primer on taxes would help (I will also search threads too).
Thank you.
Thank you.