Tax Season
Tax Season is here!
Disclosure: We are not Tax Specialists so if you need more help or clarification we recommend you make an appointment as soon as possible with one.
Tax season is here and the team at 904 Nannies thought we would make a quick blog with different tax resources all in one place. We know how taxes can be very stressful!
Unfortunately there is a lot of miscommunication when it comes to taxes in the nanny realm. As seasoned nannies, we ourselves at one time or another been told by CPAs, Accountants, Tax Specialists that we are Independent Contractors and need to receive a 1099. That is not correct. Keep reading and you’ll have a plethora of resources coming directly from the IRS on how household employers are to navigate those tax waters.
If you want to make paying your nanny and dealing with taxes as easy as possible, we highly recommend using a payroll company. Here are two wonderful companies that understand nanny employment and taxes.
It’s not too late to talk with your nanny or nanny family about filing taxes correctly. Families, know that you cannot receive tax credits if you pay your nanny under the table or as an Independent Contractor. W2s must be postmarked or received by January 31st.
Per IRS Publication 926: Nannies are household employees and must be paid hourly with taxes taken out. They must receive a W2 at tax time. The Fair Labor Standards Act (FLSA) specifically states that nannies and other household employees are covered by minimum wage and overtime laws.
Families here is the link to where you can sign up for your EIN: https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
If you need the link to file an extension you can find it here!
Taxes are never a fun topic, but being sure that your nanny is properly set up with their taxes is unfortunately very rare and will speak volumes on how you appreciate your very own Mary Poppins!
For the Nannies!
Did your Nanny Family try to claim you as a 1099 worker? Read the article here from the IRS to learn on how to navigate those waters.
This is incorrect due to IRS Publication 926. You can file a misclassification: about-form-8919.
If you already filed your return you can file an amended return here.
If your W2 form is missing or incorrect this IRS article a a wonderful resource.
Happy Tax Season!
