Get Help with Payroll and Other Issues for your Nanny – Parental Choice Ltd

1. Get Help with Payroll and Other Issues for your Nanny There is much more than comes with hiring a nanny than you may realise. While you are getting care for your children and often, help with household tasks, you have other responsibilities you are legally bound with. One that people often miss is their responsibility for paying nanny taxes. This can get you into trouble though so make sure you know what it is all about from the start. If you aren’t familiar with this, you will be paying nanny taxes based on two factors. First, the amount of money you withhold from your employee from their wages pays for part of this tax. Then other part of it, you pay because you are their employer. Typically, you will need to match a portion of the FICA that is being withheld. Who has to Pay it? You are obligated to be paying nanny taxes if you pay someone $2,000 or more in a given calendar year for such services. Don’t try to classify them as a contractor as that can get you into big trouble on your taxes. You may have to pay a fine, penalties, and even be charged with tax evasion! When you hire a nanny, make sure they complete the right paperwork for you. They will need to provide a copy of their social security card or ITIN. They will need to complete an I-9 and you will need to see a form of ID that you can use to complete that form as verification. If needed where you reside, they will also need to complete a W-4. Keep these documents in a secure location so you can refer to them as you need to. Make sure the information isn’t stored where it could be compromised as you owe it to them to keep their information private. This process is to help reduce the number of households paying their nannies under the table. The goal is to ensure there is a record of their employment and their earnings that can be verified. It also helps them to build up their ability to obtain social security and retirement funds down the road. Quarterly Filing One of the main differences is you only file taxes once per calendar year. However, when it comes to paying nanny taxes, you have to turn in the required documents quarterly. You will need to pay four times per year for the amount due for that particular quarter. You may need to do estimated payments if you don’t have exact amounts. It can be tricky to get these calculations accurate and mistakes are quite common. It isn’t recommended to do them on your own. The last thing you want is legal problems due to the amounts being incorrect. Don’t leave this up to chance as you could end up with a full fledge audit of your financial records.

2. Hire an Expert Rather than being overwhelmed with paying nanny taxes and other requirements such as pension, hire an expert to assist you. They can help you to get the right formats and documents in place. They can take care of all of the calculations for you and even payroll. This is a hassle-free way to make sure you don’t let anything fall through the cracks. When you hire an expert for paying nanny taxes, you will get an entity that knows what the ins and outs to think about. They can look at the variables and they can let you know the options you have. Since they stay on top of the laws, they can let you know about changes so you are always in compliance. About Us: Take the stress out of hiring someone to watch your child. Find someone with the right qualifications for the right price. We can help you with daycare needs and with finding an outstanding nanny so you don’t have to struggle. We can also help you to follow the laws when it comes to taxes and other concerns for such service providers. At http://www.parentalchoice.co.uk, we always offer up to date information so you can get the facts and be in compliance. Avoid common mistakes and pitfalls when you have a great resource like us to help you navigate through it all!