Even before Covid, many families already used nannies to help take care of their children and elderly relatives. Whether it’s the potential savings, uncertainty about returning to a shared environment, or a multitude of other reasons, in-home care provides parents and caretakers a ton of benefits. However, it also comes with hurdles as well, with how to figure and pay the so-called nanny taxes being a chief concern.
Nanny taxes don’t have to be complicated.
On this episode of the Taxgirl podcast, Kelly is joined by Jay Schulze, the president of HomeWork Solutions, a company that provides household employers an easy way of handling the nanny tax burdens that arise. Kelly and Jay talk about the risks and rewards of becoming a household employer as well as reasons why not having your nanny on the books could come back to haunt you.
Listen to Kelly and Jay talk about nanny taxes:
- How COVID-19 impacted childcare
- Nanny shares
- The distinction between employee and independent contractor
- Having multiple nannies over a year
- Do you need worker’s compensation insurance
- Price of nanny tax services
- The risks when becoming a household employer
- The amount of unpaid taxes among household employers
- Nanny tax breaks
- Household employer tax breaks
- FICA taxes
- What you should look for from a nanny tax service
- How to handle household employees that don’t want to pay taxes
- Senior care
- How to handle bonuses to household employees
- Finding a payroll service for nanny taxes
More about Kelly:
Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them.
To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.
Kelly’s Website: Taxgirl
Homework Solutions: Website