Wednesday, June 13, 2007

Summer Nanny / Temp Nanny Payroll Tax Obligations

Q: I have been asked to be a nanny for a young family. They would like to pay me in cash. This is a temporary position. Do I need to report this on my taxes?

A: Household employment law states that a nanny, even a temporary one, is a household employee. You are the employee of the family you work for and if you earn $1500 or more while working for them, they are required to withhold your federal and state taxes and report them to the state and the IRS on your behalf. And you are always required to report all wages you earn on your annual income tax returns each year. Unfortunately, there are no positions exempt from reporting income on annual tax returns. For additional details, please feel free to give us a call and visit our website.

Hope this helps.

Stephanie Breedlove
Nanny Tax and Payroll Expert
Breedlove & Associates, LP
888-273-3356 phone
512-347-9331 fax

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