https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Thu, 23 Apr 2026 04:37:27 +0000 https://boards.hellobee.com/topic/nanny-taxes-1#post-2034286 Wed, 21 Jan 2015 16:06:14 +0000 littlejoy 2034286@https://boards.hellobee.com/ <p>@turkeylurkey: Yep. Already emailed our accountant. Now looking for personal recs for services. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034278 Wed, 21 Jan 2015 16:01:59 +0000 turkeylurkey 2034278@https://boards.hellobee.com/ <p>This is why I suggested go to the CPA and ask. Laws are different everywhere and none of us are tax experts. Good luck! </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034276 Wed, 21 Jan 2015 16:00:58 +0000 gingerbebe 2034276@https://boards.hellobee.com/ <p>Call your accountant. Our CPA handles all the bookkeeping and issuing the paychecks for us and we just have them authorized on our Quickbooks. We just have a simple contract with our nanny (my mom) and filled out her I-9. We just keep track of hours like a time sheet and email our accountant. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034275 Wed, 21 Jan 2015 16:00:34 +0000 jape14 2034275@https://boards.hellobee.com/ <p>@littlejoy: My husband handles our nanny taxes (and she just started 1.5 months ago), so I don't know a lot of the specifics, but I priced out different tax services and we went with Savvy Nanny Payroll (you can google it). It's $29.99/month and seems pretty easy to use. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034265 Wed, 21 Jan 2015 15:55:40 +0000 raintreebee 2034265@https://boards.hellobee.com/ <p>@littlejoy: I think we pay $800 a year. But that is for everything. They have ala carte pricing as well. <a href="http://www.myhomepay.com/Service/Nanny-Tax-Service-Costs" rel="nofollow">http://www.myhomepay.com/Service/Nanny-Tax-Service-Costs</a></p> <p>You can probably find someone local for cheaper. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034199 Wed, 21 Jan 2015 15:37:00 +0000 littlejoy 2034199@https://boards.hellobee.com/ <p>@raintreebee: Educating is not "picking on" so no worries there. :) </p> <p>Do you have an estimate of what you pay for the service? Flat rate or a %? </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034183 Wed, 21 Jan 2015 15:32:09 +0000 raintreebee 2034183@https://boards.hellobee.com/ <p>Household employees, even part time nannies, are not considered independent contractors for federal tax law purposes. <a href="http://www.irs.gov/publications/p926/ar02.html" rel="nofollow">http://www.irs.gov/publications/p926/ar02.html</a><br /> In my experience, state labor laws also apply.</p> <p>I highly encourage you to comply with all labor and tax laws. I know a lot of people don't, but intentional noncompliance can be punishable by imprisonment. It's not a joke--it's a crime. I swear I am not trying to pick on you! I am just always surprised at how many good, law abiding citizens find this one area of the law "optional." </p> <p>We love the company Breedlove, which takes care of pretty much all of the tax paperwork and functions as a payroll service. They also identify what labor laws with which you need to comply. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034175 Wed, 21 Jan 2015 15:29:27 +0000 mrs.shinerbock 2034175@https://boards.hellobee.com/ <p>@littlejoy: We only pay the employer portion of the taxes, we do not withhold the employee taxes (because she does not want us to.) This is the first year that we have done this, so I am not sure what the deductions will be, but I think we do get some. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034169 Wed, 21 Jan 2015 15:26:11 +0000 littlejoy 2034169@https://boards.hellobee.com/ <p>@mrs.shinerbock: Thank you for the rec! I'm curious why YOU pay quarterly? Just ss and workers comp kind of taxes? Then you see a refund on your costs each year? I know it wouldn't be 1 for 1, but I understand you do get a deduction for childcare. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034163 Wed, 21 Jan 2015 15:25:22 +0000 yoursilverlining 2034163@https://boards.hellobee.com/ <p>@turkeylurkey: Per the IRS, household employees like nannies are employees, not independent contractors so you can’t issue them a 1099. Misclassification of employee status can be considered tax evasion, which is why I would definitely speak to an accountant and probably also a labor lawyer to cover all your bases. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034154 Wed, 21 Jan 2015 15:23:02 +0000 mrs.shinerbock 2034154@https://boards.hellobee.com/ <p>We use Home Pay (Breedlove) as well and am pretty happy with it. It is more expensive than doing it yourself, but we just had to fill out some forms and have our nanny fill out a few forms - they take care of the rest. They got us a household employer tax ID number, generate paystubs and W2 forms, calculate taxes and withdraw the quarterly tax payment from our account. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034140 Wed, 21 Jan 2015 15:19:47 +0000 littlejoy 2034140@https://boards.hellobee.com/ <p>@turkeylurkey: thanks!</p> <p>I guess now I'm looking for sites or companies you use? I don't think I have time to track and do all of that on my own. I'd like to finds service where she or I can log hours, and they pay her (from my bank account). Any suggestions? I like personal recommendations. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034114 Wed, 21 Jan 2015 15:14:36 +0000 turkeylurkey 2034114@https://boards.hellobee.com/ <p>I don't think you'd have to comply with all the labor laws as a an employer would. She would or could be 1099 contract labor. Ask your accountant that you work with. They will know your state and local laws better than any of us and probably have past clients who have been in the same situation. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034109 Wed, 21 Jan 2015 15:13:04 +0000 littlejoy 2034109@https://boards.hellobee.com/ <p>@mrsjazz: I'm going to email my accountant now. I might as well get the info to process before I see her in Feb. Thanks for the insight! :) </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034101 Wed, 21 Jan 2015 15:10:03 +0000 mrsjazz 2034101@https://boards.hellobee.com/ <p>@littlejoy: OH OK. Haha. I just didn't want you getting fined. My friend who lives in Louisiana paid her nanny on the books and didn't have the same requirements that I do in NYC. She still had to do the W4 and I9 and she didn't pay quarterly taxes, they just paid back the gov't. through when they did their taxes. You should look up your state's requirements for household employees. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034100 Wed, 21 Jan 2015 15:09:38 +0000 littlejoy 2034100@https://boards.hellobee.com/ <p>@yoursilverlining: She won't be claiming this year. I do know that much. Again, we didn't realIze at the time that this would be permanent, or that she'd make enough to qualify as someone we needed to claim as an employee (or whatever the term is). </p> <p>I'm aware (now) that this is something that needs to be tracked or reported. Trust me, it's in our favor to report it ... We are missing out on the deduction. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034096 Wed, 21 Jan 2015 15:07:15 +0000 blackbird 2034096@https://boards.hellobee.com/ <p>@littlejoy: Yeah it would just make me suuuper nervous. Literally all we do is take T's SSN and plug it in at the end of the year. I don't know that a nanny would be inputted differently. We don't get a receipt every time we pay her, but I see that it's been deposited, so I could trace it if i had to. I guess if you wanted to pay her for this year, you could give her a lump payment to make up the difference? Not sure. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034093 Wed, 21 Jan 2015 15:06:33 +0000 BKCaribBaby 2034093@https://boards.hellobee.com/ <p>We pay our nanny "on the books" as it's referred to here. We use the Home Pay service, which used to be called something else. I think that's right that you can't claim her, but I am not an expert in this either. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034092 Wed, 21 Jan 2015 15:06:06 +0000 yoursilverlining 2034092@https://boards.hellobee.com/ <p>Ugh, yeah, you really should speak to a local lawyer quick about that (in case she follows the law and claims the income and you owe penalties), and about what you should do going forward. Some states are more small business friendly than others – ours for instance is a bear. You may be responsible for withholding and paying into federal unemployment tax/fund, state unemployment tax/fund, social security and medicare, state income tax and more – much, much more than just giving your accountant her ssn. Some states will also require you to take out and carry a workers’ compensation insurance policy. She will be your employee, and as an employer you will have a lot to comply with. IRS rules, labor laws, you name it. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034090 Wed, 21 Jan 2015 15:05:23 +0000 littlejoy 2034090@https://boards.hellobee.com/ <p>@mrsjazz: I meant THIS year, not 2014. :) So yeah, moving forward. It is a big expense, and we want to claim as many deductions as we can. </p> <p>I'm going to talk with our tax accountant when I see her in February, but I figured there's gotta be at least one family here who pays for in-home childcare and has experience with taxes and all of that. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034072 Wed, 21 Jan 2015 14:58:35 +0000 mrsjazz 2034072@https://boards.hellobee.com/ <p>@littlejoy: I'm no expert, but I don't think you can just claim them for this year after paying her under the books for 9 months. I think moving forward you can do so, but not if you've been doing it illegally. You may get hit with a fine.</p> <p>Someone who is in the know should chime in!</p> <p>I don't know what state you're in but I know for NY we had to register as a household employer, get disability insurance, workers' compensation, etc. We have a W-2 and I9. We don't use a service but I think they are nice if you can swing it--this whole thing is a pain in my neck and I'm already late on paying my quarterly taxes. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034068 Wed, 21 Jan 2015 14:57:49 +0000 littlejoy 2034068@https://boards.hellobee.com/ <p>@blackbird: The legality part is a big piece for us. We had a personal relationship with her beforehand, and I didn't realize how it would add up. We have a tax accountant, so I imagine we would need to keep records for her and give with our nanny's ssn? She's part time, so the taxes might not be as high, but again, I have no clue!! </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2034008 Wed, 21 Jan 2015 14:37:26 +0000 blackbird 2034008@https://boards.hellobee.com/ <p>Well, it's illegal, so there's that. If you want to cover taxes, you might want to check on the cost. They are between 25 and 30% typically, which may be a huge amount if she is full time! You can't claim them unless she pays them and she may just not want to. She has to give you her social security number. but that's it, it's very easy. That's how we do it with our in-home daycare. There's no W2, I just add up the weeks that we paid her (50 weeks a year at X) and plug it into Turbo Tax. </p> https://boards.hellobee.com/topic/nanny-taxes-1#post-2033997 Wed, 21 Jan 2015 14:33:10 +0000 littlejoy 2033997@https://boards.hellobee.com/ <p>Can anyone in the US give me some guidance on how to handle keeping track of payments and reporting childcare costs for taxes? We have a part time nanny that we've been paying cash. I now realize she's making enough to claim, and for legal reasons, I need to set it all up for 2015. </p> <p>We were thinking of offering her a 25% raise to make the difference of what she'll have to pay in taxes. </p> <p>Do you use a service for paying your babysitter or nanny? This seems appealing so I don't have to worry about keeping track or dealing with the w2 (I don't even know how to go about doing that). </p> <p>I imagine the conversation will go over well, I just need to have my information in order. </p> <p>Any tips would be so appreciated! </p>