January 19, 2017
As President-elect Donald Trump prepares to take office, he is appointing individuals to fill various public positions including his cabinet and judicial and ambassador roles. Like many Presidents before him, he is finding that household payroll taxes can be a serious stumbling block for candidates.
As reported by the New York Times (https://www.nytimes.com/2017/01/18/us/politics/mick-mulvaney-taxes.html), Trump’s selection for White House budget director, South Carolina Representative Mick Mulvaney, admitted to the Senate Budget Committee that he failed to pay over $15000 in payroll taxes for a nanny he employed in 2000.
Mulvaney paid the taxes, along with penalties and interest, and now will wait and see if his payroll tax negligence will spoil his appointment. Mulvaney’s situation is all too familiar for nominated public officials who often undergo intense public scrutiny and vetting by federal agencies to determine if there are problematic issues or conflicts for candidates.
Two Attorney General candidates under President Clinton famously had their nominations pulled after similar “nanny tax” issues (Zoe Baird and Kimba Wood). President George W. Bush’s selection for Secretary of Labor withdrew due to employing an illegal immigrant in her home (Linda Chavez). And Barack Obama’s choice for the head of the Health and Human Services Department withdrew his nomination due to unpaid payroll taxes (Tom Daschle).
Regardless of your job or career aspirations, NannyChex can help ensure that you are in accordance with payroll tax and labor laws when employing a household employee. Contact us today for more information about paying your household employee and avoiding any professional and legal consequence for not paying the “nanny tax.”