Nanny Payroll and Tax Information and News

It is almost New Year's which mean it is time for a new W-4.  The IRS has released the 2021 W-4.  As expected, there are not many changes from the 2020 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 2020. The 2021 W-4 is available here:

https://www.irs.gov/pub/irs-pdf/fw4.pdf

The IRS continues to offer a calculator on their website to assist individuals in estimating their expected tax liabiliaty.  While using the calculator is not required, both the IRS and tax professionals encourage employees to perform a “checkup,” of their individual withholding status each year, and especially if you experienced any changes to your household income, number of dependents, or any other situation that may affect your tax liability: 

https://apps.irs.gov/app/withholdingcalculator/