What is Nanny Tax?
The Nanny tax refers to certain tax law, and taxes owed by people who employ childcare workers in their homes. Such tax laws exist in many countries, including in the US, the UK, and Canada, and these complicated laws can be a significant hassle for parents who home workers. Theoretically, a nanny or babysitter doesn’t have to be employed full time in order for parents to be responsible for paying some forms of nanny taxes. In the US, for instance, nanny taxes may be owed by parents who pay more than $1500 US Dollars (USD) per year for babysitting services from the same person. In most countries where the nanny tax exists, the taxes paid are like those any other employers would pay to the government when they have an employee. Most of the time, large employers remove taxes from their employees’ paychecks when they pay them. Herein lies the problem with the nanny tax. Many individuals don’t deduct these taxes, so they may end up having to pay the taxes out of their own pockets at the en
The Nanny tax refers to certain tax law, and taxes owed by people who employ childcare workers in their homes. Such tax laws exist in many countries, including in the US, the UK, and Canada, and these complicated laws can be a significant hassle for parents who home workers. Theoretically, a nanny or babysitter doesn’t have to be employed full time in order for parents to be responsible for paying some forms of nanny taxes. In the US, for instance, nanny taxes may be owed by parents who pay more than $1500 US Dollars (USD) per year for babysitting services from the same person. In most countries where the nanny tax exists, the taxes paid are like those any other employers would pay to the government when they have an employee. Most of the time, large employers remove taxes from their employees’ paychecks when they pay them. Herein lies the problem with the nanny tax. Many individuals don’t deduct these taxes, so they may end up having to pay the taxes out of their own pockets at the en
