The kids are out of school – now what?
Have you ever thought of hiring a nanny to help with your kids? With today’s busy lifestyles, nannies are becoming more popular as they provide more flexible hours and can even help transport kids around to their various activities and school functions. But hiring household help means the need to pay payroll taxes.
If you pay someone more than $1,800 in a year you are responsible for withholding Medicare and Social Security taxes and paying the employers match of these taxes. If you pay someone more than $1,000 in a quarter you are also responsible for paying both federal and Indiana unemployment taxes for them. You may pay the federal taxes on schedule H of your 1040 individual income tax return, however you will also need to file a W-2 at the end of the year. Indiana also requires you to file quarterly UC-1 State Unemployment Tax forms.
For more information on Nanny Taxes see IRS Publication 926. SBS CPA Group is happy to help you navigate these taxes, give one of our CPA’s a call today at 260-338-0833!
Karena Sylvester, CPA