How to take care of the Nanny Tax Directive
If you have someone in your home care for your child's child's spouse, child under twenty-one years of age, parent or minor child, and you paid $ 1,700 or more than one, you need Nanny Tax.
The nanny tax is simply the FICA and FUTA taxes must be paid to the Internal Revenue Service by employers. In addition to these taxes, you will probably have to pay state unemployment taxes for the use of this type of internal worker.
FICA tax is the largest to% 15.3 billion U.S. dollars, and you and your employees each have half nanny, unless you pay the nanny in cash and does not deny his half-share. In this case, you are responsible for all FICA taxes.
FUTA or federal unemployment tax is due on the first $ 7,000 wages nurse until the nurse earns less than $ 1,000 per quarter. FUTA tax is 0.8%, provided you pay your state unemployment> Set the time. If you pay state taxes on unemployment when it is due, Futa was 6.2% of salary as a nurse.
The federal withholding tax is only at the request of the nurse to a Form W-4, and is rarely done for domestic workers in this situation.
FICA and FUTA payroll taxes are part of your tax return personal nurse. These rights are established and calculated on Schedule H form attached to your incometax return. The amount transferred is derived from Annex H to the appropriate line of your return in 1040 and paid during your tax payable. Remember that when calculating wages nanny, you must add 7% to 65 who are not holders of wages annual nurse to determine the exact amount of tax.
If the taxes are underpaid because they did not calculate correctly Nanny tax, the IRS will charge interest until Ante Up. We recommendto make quarterly estimated tax payments on your FICA and Futa, to avoid this situation. Also note that you must submit a tax identification number and issue a Form W-2 for your mercy and a copy of the file with the IRS.
If you have employees who work at home you must file charges of employment of family, you can use the services of a tax advisor or CPA to help you determine when and what you need to pay the IRSfulfillment of tax obligations for domestic workers.