Do the Nanny Tax rules ever change?
Yes. The 1995 Federal legislation, the “simplification” of the nanny taxes, began a cascade of changes that continues. Household employers all must obtain a Federal Employer Identification Number, for example, when in the past reporting could be done with the employer’s SSN. Beginning in 1997 all household employers are required to submit Form W-3 to the Social Security Administration for the first time. Effective in 1998, Federal household employment taxes are subject to penalties if not paid in periodically by the employer, either by submitting quarterly payments or adjusting withholding on the employer’s paycheck. New York State defaulted on a Federal loan in 2004 and NYS employers are paying a temporarily elevated FUTA rate until the loan is repaid. There have been 7 different changes to the wage threshold that triggers an employment tax obligation. HomeWork Solutions’ professionals keep current with these changes and notify clients accordingly.
Yes. The 1995 Federal legislation, the “simplification” of the nanny taxes, began a cascade of changes that continues today. Household employers all must obtain a Federal Employer Identification Number, for example, when in the past reporting could be done with the employer’s SSN. Beginning in 1997 all household employers are required to submit Form W-3 to the Social Security Administration for the first time. Effective in 1998, Federal household employment taxes are subject to penalties if not paid in periodically by the employer, either by submitting quarterly payments or adjusting withholding on the employer’s paycheck. New York State defaulted on a Federal loan in 2004 and NYS employers are paying a temporarily elevated FUTA rate until the loan is repaid. There have been 7 different changes to the wage threshold that triggers an employment tax obligation. HomeWork Solutions’ professionals keep current with these changes and notify clients accordingly.
