Plenty of people pay their childcare providers in cash to avoid the tax issue. Why you shouldn’t pay your nanny under the table How to figure out your nanny’s wages and taxes.You and your nanny have some forms to fill out.Why you shouldn’t pay your nanny under the table. In this guide we make it easy to understand how to pay nanny taxes. Whether you call the person who looks after your kids a babysitter, a nanny, or simply by their first name, your tax liabilities are unambiguous. But for many reasons-some unexpected-I hired someone to care for my children at our house.Īccording to the IRS, I now had a “household employee,” which suggests mansions full of gardeners, chefs, personal assistants, and other luxuries way beyond my means.īut no matter. I knew the first option would be cheaper. That left me with the choice between a babysitter to watch my kids in their home or one who would come to my house. Putting them in daycare wasn’t a great option for us because my freelance work schedule varies throughout the year. I have two children, a three-year-old and a five-month-old. On the other hand, many jobs pay no more than what one would pay for full-time daycare, particularly with more than one child in the family. If one parent stays home, the family saves money in the short-term, but the non-working parent loses current wages and future Social Security benefits.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |