Entries by admin

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 […]

2022 W-4

2022 is right around the corner, and the IRS has released the 2022 W-4.  As expected, there are not many changes from the 2021 W-4, but now is a good time to review your withholding status and update your W-4 with your employer – especially if you had any changes in 2021. The 2022 W-4 is available […]

2022 Minimum Wage Increases

As the calendar turns to 2022, many workers will see an increase in minimum wage in the new year.  26 states have minimum wage increases scheduled for 2022 and 21 of those states have their new rate effective January 1st.  The increases can be traced to a few factors including previous ballot initiatives and automatic cost […]

IRS Mileage Rate for 2022

The IRS has set the standard mileage rate for 2022 at 58.5 cents per mile.  This is an increase from 56.5 cents in 2021.  Per the IRS announcement, “the standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile.”  Employers are not required to pay the IRS […]

2022 Nanny Tax Information

The Social Security Administration has released the 2022 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, it is important to note […]