The Nanny Network is here to help with the entire process, including your taxes!
Because of their practical resources and specialized services, the payroll companies linked below are great for answering nanny-related tax questions and managing legal payments. No matter which of these companies you choose, The Nanny Network is confident you’ll receive the professional support you need!
Families and nannies should be aware that the IRS considers nannies Household Employees, and as such, nannies should not be paid “under the table.” Nannies cannot be legally paid as independent contractors but, rather, must be paid as employees. Per IRS standards, anyone paid more than $2,600 by the same employer in one calendar year must have their taxes accounted for and withheld. The number of hours in which a nanny works has no impact on compliance rules and regulations, since taxation is based on dollar amounts. Please refer to the IRS Publication 926, Household Employer’s Tax Guide for more information.