Nanny Tax Archives - TLC Family Care Where Family Comes First Wed, 15 Jan 2025 16:17:22 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 /wp-content/uploads/2017/08/cropped-hearts-for-favicon-32x32.png Nanny Tax Archives - TLC Family Care 32 32 Best Practices to Establish the Perfect Nanny Relationship /blog/best-practices-to-establish-the-perfect-nanny-relationship/ Tue, 24 Jan 2023 12:46:04 +0000 /?p=4751 Our guest post today comes from International Nanny Association.   You’ve finished your search and have finally hired the best-fit nanny for your family, but where do you go from here to ensure that you develop the best possible nanny relationship ongoing? Honeymoon Period In every new job, both the employer and employee will be…

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Our guest post today comes from .

 

You’ve finished your search and have finally hired the best-fit nanny for your family, but where do you go from here to ensure that you develop the best possible nanny relationship ongoing?

Honeymoon Period

In every new job, both the employer and employee will be trying to make the best possible impression. Venturing into new territory will mean that the nanny may try different approaches and end up keeping some, while changing others. Adjusting to the expectations of the job and forming a bond with the children and family will take time. Rome, the perfect romance, and a long-lasting nanny relationship aren’t built overnight (or in two weeks); be patient and realistic.

Don’t Sweat the Small Stuff

You hired this professional for a reason. That being said, she’s human. She may do things differently than you do, or would do. That doesn’t make them wrong. People have diverse ways of handling children. It’s easy to pick up on these variances, especially in the beginning, but try to be respectful and give your new nanny the space she needs to blossom in your household. Carefully weigh what really matters. Certainly, something involving a safety concern or a personal boundary you’d communicate about, but if she gets your child dressed in another order than you do or has a varied teeth brushing routine, it may not be worth worrying about. In fact, many parents comment on how much they’ve gained from having another adult around, with years of childcare experience, who second handedly taught them a great deal, if they were open-minded and willing to see other methods through this lens. At the end of the day, if your children are well cared for and you trust her, then that speaks volumes.

 

The professionals at ë˵personally assist nannies, babysitters and families inSt. Louis, Atlanta, Chicago, Nashville, Memphis, Charlotte, Miami and Orlando to find the right childcare arrangement. Our mission is to provide a safe and personalized approach for families and caregivers to connect with each other that is not an internet search. TLC has worked with families, nannies, sitters, newborn care providers, and tutors for over 35 years and looks forward to working with you! To find great nanny and babysitting jobs visit us attlc@tlcforkids.comor Call 314-725-5660.

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Federal Reporting Thresholds for Household Employers /blog/federal-reporting-thresholds-for-household-employers/ Thu, 29 Dec 2022 20:41:03 +0000 /?p=10405 Tax information for employers and nannies is being updated for the new year. Thanks to our friends at HomePay for this valuable information all nannies and employers should know. The earnings threshold that triggers the requirement to remit FICA taxes on a household employee’s wages will increase from $2,400 in 2022 to $2,600 in 2023.…

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Tax information for employers and nannies is being updated for the new year. Thanks to our friends at HomePay for this valuable information all nannies and employers should know. photo of tax papers and calculator

The earnings threshold that triggers the requirement to remit FICA taxes on a household employee’s wages will increase from $2,400 in 2022 to $2,600 in 2023. If the annual FICA wage threshold is reached, the employer becomes responsible for remitting both the employee and employer portions of FICA on all the wages they paid to the employee during the tax year. When wages paid to a household employee do not reach the annual FICA threshold, the employer is not required to issue a W-2.

A new line has been added to form 1040 (federal personal income tax return) for reporting income earned as a household employee that was not reported on form W-2 because the wages stayed below the FICA threshold. It is no coincidence that the IRS added this new line alongside the change to the threshold triggering the requirement for TPSOs like Venmo and PayPal to file and issue a 1099-K.*

*Previously, the 1099-K threshold had been $20,000 and 200+ transactions received. Effective 1/1/23, the threshold will be $600 in payments received.

1099-K Threshold Changes Postponed

This past Friday, December 23rd, the IRS announced that the effective date of the new 1099-K threshold will be pushed back a year. So, rather than impacting payments made after 1/1/22, the change will impact payments made after 1/1/23. Per the , the delay is intended to provide more time for taxpayers to prepare and understand the new reporting requirements.

While changes to the 1099-K requirements do not impact payments made through a payroll service, we know that TPSOs like Venmo, PayPal and Stripe are frequently used by families to pay date night sitters and other more temporary/adhoc providers. Earlier this year, we shared we received when the change was first announced. As of now, the answers are still accurate – minus the effective date of the change. We will continue to compile resources to help families and domestic workers ensure that they have their ducks in a row for the 2023 tax filing season.

Should you have any questions, give us a call or reach out to for all your nanny tax and payroll needs.

The professionals at ë˵personally assist nannies, babysitters and families inSt. Louis, Atlanta, Chicago, Nashville, Memphis, Charlotte, Miami and Orlando to find the right childcare arrangement. Our mission is to provide a safe and personalized approach for families and caregivers to connect with each other that is not an internet search. TLC has worked with families, nannies, sitters, newborn care providers, and tutors for over 35 years and looks forward to working with you! To find great nanny and babysitting jobs visit us attlc@tlcforkids.comor Call 314-725-5660.

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Why didn't I get a W-2? /blog/why-didnt-i-get-a-w-2/ /blog/why-didnt-i-get-a-w-2/#respond Fri, 31 Jan 2014 19:04:33 +0000 http://www.tlcforkids.com/blog/?p=1658 When tax time comes around every year TLC for Kidsis oftenasked this question…Why didn’t I get a W-2? Babysitters often times do not receive W-2’s from the families theybabysit for. Nanny tax experts Breedlove and Associatesshare the reasonwhy. Nannies who work for one or more families on a temporary basis usually have lots of tax…

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When tax time comes around every year is oftenasked this question…Why didn’t I get a W-2? Babysitters often times do not receive W-2’s from the families theybabysit for.

Nanny tax experts Breedlove and Associatesshare the reasonwhy.

Nannies who work for one or more families on a temporary basis usually have lots of tax and legal questions. There are special provisions in the law for “casual babysitting,” so here’s what you need to know:

Temporary nannies are still employees; not independent contractors. They are employees of the family.

A nanny working in a family’s home — whether the job is temporary or permanent, part-time or full-time — is an employee of the family. It is illegal for the family to treat you as an independent contractor (a designation which increases your tax burden significantly). The “employee” classification is not determined by how much you are paid or the amount of time you work for the family; it is determined by the nature of the work performed. The IRS has ruled definitively that caregivers are employees of the families for whom they work.

Your employer may not need to withhold taxes from your wages.

Household employment tax requirements are determined by the amount of the gross wages paid to an employee. In 1995, the IRS modified household employment tax requirements to exempt temporary employment and casual babysitting from the tax process. This is sometimes referred to as the “Casual Babysitting Exemption.” As a temporary employee, if you earn less than $1,900 (2014) in a calendar year, your employer is not required to withhold any taxes from your salary.

However, if you earn more than $1,800 (2013) from a family in a calendar year, your employer — the family — must meet the household employment tax withholding and reporting obligations. They are required to withhold payroll taxes from your wages and then report and pay those taxes to the tax agencies quarterly — along with some employer taxes that provide you with retirement and unemployment benefits. At the end of the year, the family should give you a Form W-2 detailing your wages as well as the taxes that you have pre-paid throughout the year.

If your employer fails to withhold taxes and file employment tax returns, they are breaking the law — and you will not be entitled to the retirement and unemployment benefits mentioned previously. Hopefully, you won’t face that situation. But if you do, the best thing you can do is make sure you avoid tax and legal problems for yourself by reporting your wages and paying your income taxes at the end of the year.

You are responsible for keeping track of your wages.

If you are paid less than the $1,900 (2014) threshold per family you work for, you will most likely not have any taxes withheld from your pay since your employers are not obligated to do so. However, temporary nannies are still required to track the amount of money earned from every employer — no matter how little you are paid. You are responsible for reporting all wages earned during the year by filing annual income tax returns — even if your wages are not high enough to trigger a tax payment.

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