A household employer is defined
as anyone who pays an individual to perform duties in or
around their home. This includes both nannies and home
managers. If you pay a household employee over the IRS
threshold for a calendar year, ($1,600 as updated for 2008) you
are required to fulfill state and federal tax
obligations.
As a Household Employer, you are responsible
for:
- The employer’s half of Social Security & Medicare
- State Unemployment Insurance
- Federal Unemployment Insurance
- Other State Taxes
You can expect to pay payroll taxes of 9-11%
of your nanny’s gross wages.
Taxes to be Withheld by Household
Employers
As a Household employer you are required
to withhold taxes from your nanny’s paycheck. These
include:
- Employee’s Half of Social Security & Medicare
- Federal Income Tax
- State Income Tax
- Other State Taxes (some states levy additional
taxes to pay for things like Disability Insurance)
- Applicable city tax
Clark, Schaefer, Hackett & Co.,
Based in Cincinnati, Clark, Schaefer, Hackett
provides Household Employee Tax Services to many CCP families.
For more information you may contact Pat Semancik at 513-241-3111.
Clark, Schaefer, Hackett provides the following services
to families with Household Employees:
- Initial Meeting: CSH provides an overview
of employer requirements and forms needed to properly establish
you as an employer (including form I-9), and provides appropriate
forms for the child care provider for tax withholdings.
- Payroll calculation: CSH properly calculates
deductions for employee’s paychecks (Federal, State
and Local) and all employer payroll taxes
- Tax returns: CSH provides necessary quarterly
payroll tax returns and semi-annual worker’s compensation
returns and instructions for filing
- Payroll Records: CSH maintains all payroll
records and reports
- Schedule H: CSH provides required information
for the completion of Schedule H for your Federal Income
Tax return
- Form W-2: CSH provides annual wage statements
(Form W-2) for your employee and Federal, State and Local
tax authorities
Online Salary Tax Calculator
Please click here for an online
salary tax calculator for an indication of gross
pay and taxes for your provider.
For Household Employee Payroll and
Tax Information
http://smallbusiness.paychex.com/payroll/ |
