What are the risks of not paying these "nanny taxes"?

It is critically important that household employers understand that, as employers, they are subject to four types of laws: immigration law, payroll tax law, labor law, and insurance regulations. Hiring a nanny who is not legally authorized to work in this country is a violation of US immigration law, and is typically only subject to a civil fine should you be caught.

An intro to nanny taxes

Congratulations!

You have hired a household employee - or you are thinking about hiring one- And want to understand your employment tax obligations. This blog aims to provide a more clear insight about household employment taxes. We created this blog to step you through your responsibilities and advise how we can help. When you hire a nanny or other household employee you become an employer. 

About the calculation of Nanny Tax - Requirements

One of the things that families overlook when hiring a caregiver or nanny is taxes and their calculation. The so-call nanny tax is applicable if the nanny is paid $1,900 or more in a calendar year. It is composed of the taxes the household withheld from the employee and the taxes the family pays as the employer.

Some of the fees that are part of the nanny tax and required to be withheld are Medicare and Social Security, as well as state and federal income taxes each pay period. The family is also liable to pay matching parts of the Social Security and Medicare as well as the state and federal unemployment insurance taxes.

The Benefits of Paying Nanny Tax

Finding the perfect nanny for your family can make life a lot easier and stress-free. Once you have found the right person for the job, it is time to figure out whether you should pay her over the table, or under it. Although you may have friends who have chosen to avoid “nanny tax” by paying under the table, here are some reasons for why you should consider the alternative.

Nanny Tax Withholding Calculator 2014

Searching for a Nanny Tax Calculator? In this post you can find all the information you need in order to properly calculate your tax obligations to "uncle Sam" IRS as a newly household employer, or just an old one wishing to follow the fully legal road of taxation. All the infos and numbers that you will find below are updated and are effective for year 2014.

Nanny Taxes: What They Are & How They Are Calculated [video]

So, here's an short yet informative and interesting video I found while searching the internet about nanny taxes. Whether you are a nanny, or a care giver in general, or a parent wanting to employ a nanny to take care of his/her children while at work, the so-called Nanny Tax affects you both. By watching the below attached youtube video, you can learn the steps to calculate the Nanny Tax as also as the benefits that you receive from paying it. If you want to know how much you have to pay for the nanny tax in your personal situation, you can go ahead and use our nanny tax calculator.

Calculate Nanny Tax 2014: All questions answered

Have you heard about "Nanny Tax", and want to learn more about how to calculate it? With the present article, we are going to thoroughly explain, in simple words, the so-called Nanny Tax, and also try to clear up all the hassle that surrounds it.

So let's bring up as an example, two happily married parents where both of them are working full/part-time or searching for work. Also, they have a younger-than-13 years old child and don't have the privilege of a family member taking care of him/her, during the hours that both of them are away for work. For that reason, they are forced to the decision of hiring a nanny.