Are nannies subject to tax laws?
Nannies must be paid legally, which means legal payroll taxes should by withheld and paid to the proper entities. Nannies are subject to the minimum wage law and live out nannies are to be paid time and a half for hours worked over 40 in a workweek. Failure to abide by legal hiring and tax withholding guidelines as outlined by the Internal Revenue Service, puts you, the employer, at risk for significant fines and penalties. To simplify your obligations as an employer we strongly recommend using payroll service providers or research nanny specific payroll and tax software. Using a service makes this process easier and keeps the financial and tax errors to a minimum, reducing the risk of fines and penalties caused by incomplete, late or inaccurate filings. It also significantly reduces your time involvement. GTM, the Household Employment Experts offers a complete line of products to make this process simple and stress free.
