Both parties 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. Please refer to the IRS Publication 926, Household Employer’s Tax Guide for more information.

The payroll companies linked below are also available to answer questions regarding legal payment.
The Nanny Network recommends these companies and their resources!

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