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1. Make it officialApply for an Employment Identification Number (EIN) with the IRS. The EIN will be used in your future nanny tax dealings.
2. Meet the employment tax obligationsAs an employer, you’re generally required to pay Social Security and Medicare taxes equal to 7.65 percent of the worker’s wages.
3. Keep detailed recordsThis is usually a good idea when you have tax obligations. Handle these employment matters in a business-like fashion.
4. Check for liability of other taxesThese could include federal and state unemployment taxes.
5. Remember to file forms
The IRS requires certain forms to be filed. For instance, you must submit a W-2 for a worker for 2017 and send copies to the worker and SSA by Jan. 31, 2018.
Finally, resist the temptation to dodge the nanny tax. You’ll have peace of mind if you follow the tax rules in this area. We can help you determine your nanny tax liabilities. Contact us today.
If you commute back and forth to work every day, you typically can't deduct any Read more