2023 Nanny Tax Information

The Social Security Administration has released the 2023 earnings threshold for employers of nannies and other household employees withholding FICA (Social Security and Medicare taxes).  Unlike many industries, for household employment, FICA taxes are not withheld until the earnings threshold is met.  Although the threshold represents the minimum that an employee must earn for FICA withholdings, […]

Payroll Taxes for Household Employers and Employees

Summer is over, and many families are seeking household help.  Whether it’s an after-school sitter, a weekend caregiver, or an employee providing full-time or even 24 hour care, many families are employing domestic workers.  Employees and employers have similar questions, concerns, and frustrations with payroll taxes.  Of course, no one likes paying taxes.  But more […]

Worker’s Compensation Information

Worker’s compensation insurance is an important consideration for families who are employing a nanny or other domestic employee.  Each state administers their own worker’s compensation system and the requirements vary.  Some states require all household employers to obtain worker’s compensation coverage regardless of the employee’s hours or earnings.  Other states mandate that only certain household employers obtain […]

Hiring a Summer Nanny? Read this

It’s officially summer and many families will be hiring a nanny or other short-term employee for summer employment.  All employees, with very limited exceptions, require wage reporting and taxes to be withheld – this includes summer nannies, part-time workers, seasonal employees, and similar workers who don’t fit the typical 9 to 5, year-round arrangement that people generally […]

2022 IRS Mileage Rate Increase

The IRS has increased the standard mileage rate for the final 6 months of 2022.  For the remainder of 2022, the standard mileage rate for business travel will be 62.5 cents per mile.  This represents an increase of 4 cents from the rate at the start of 2022.  Typically, the mileage rate is updated once […]

NannyChex is now a part of SurePayroll, a subsidiary of Paychex, Inc.

SurePayroll Expands Household Employer Solution Set Parent company Paychex, Inc. acquires Colorado-based payroll firm NannyChex SurePayroll expanded its household employer solution set with the addition of Centennial, Colorado-based NannyChex. The parent company of SurePayroll, Paychex, Inc., acquired NannyChex in May 2022. More than 1.5 million childcare and 4.6 million home health and personal care workers will populate the […]

A “Nanny Tax” Primer

Household  employers often hear about the “nanny tax”, but they often do not know what that means.  Below is a primer on the payroll taxes that exist for nannies and employers of nannies: Simply put, the “nanny tax” is the combination of federal, state, and local tax requirements that a household employer is responsible for […]

Schedule H Information

Tax day is rapidly approaching, and as taxpayers scramble to assemble tax forms, receipts, and other important documentation for 2021, individuals who employed a nanny or other household employee should not forget their Schedule H. The Schedule H is a form for household employers to report the federal payroll tax liability due to having an employee.  […]

Tax Breaks For Household Employers

“What are the tax benefits of paying my household employee legally?”  We’re glad you asked!  There are two tax breaks available for household employers that can help offset the expenses of paying an employee “on the books.” The first (and usually best) option is utilizing a Dependent Care Flexible Spending Account (FSA).  Many companies offer […]