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 think about when it comes to payroll taxes.

Any employee who earns $2400 in 2022 should have Social Security and Medicare taxes withheld.  Other employee/employer taxes may be required at lower earnings thresholds.  Regardless of employment duration, most household employees also require a year-end W-2 and the employer similarly needs a Schedule H for their year-end tax retrn.  In many states, workers’ compensation insurance is required even if the employee will only be working for a few weeks or months.

Generally, wages are reported and taxes are paid on calendar quarters so “summer” nannies may actually require 2 (or more) quarters of filing.  Employers should keep these periods in mind when deciding employment periods and payroll dates:

Quarter 1:  Jan-Mar

Quarter 2:  Apr-Jun

Quarter 3:  Jul-Sept

Quarter 4:  Oct-Dec

Every locality and state is different when it comes to laws regarding short-term and seasonal employment.  Please contact a NannyChex tax specialist for more information on your specific circumstances.  NannyChex offers exceptional payroll and tax solutions for household employers.  Sign-up now and discover the NannyChex difference!