{"id":606,"date":"2012-03-01T17:26:15","date_gmt":"2012-03-01T22:26:15","guid":{"rendered":"http:\/\/www.nw-cpa.com\/?p=606"},"modified":"2012-03-01T17:26:15","modified_gmt":"2012-03-01T22:26:15","slug":"the-nanny-tax","status":"publish","type":"post","link":"https:\/\/www.nw-cpa.com\/?p=606","title":{"rendered":"The Nanny Tax"},"content":{"rendered":"

In January 1993, Clinton’s nomination of corporate lawyer\u00a0Zo\u00eb Baird<\/a>\u00a0for the position of attorney general came under attack after it became known that she and her husband had broken the law by employing two illegal aliens from\u00a0Peru<\/a>\u00a0as a nanny and chauffeur for their young child. They had also failed to pay\u00a0Social Security<\/a>taxes for the workers until shortly before the disclosures. While the\u00a0Clinton administration<\/a>\u00a0thought the matter was relatively unimportant, the news elicited a firestorm of public opinion, most of it against Baird. Within eight days, her nomination lost political support in the\u00a0U.S. Congress<\/a>\u00a0and was withdrawn. (Nannygate<\/a>)<\/p>\n

Do you have a Nannygate problem? \u00a0Employing undocumented workers is not the critical issue here, it is the non payment of employment taxes for services provided in your home by an employee.<\/p>\n

From IRS Publication 926<\/a>: \u00a0It is unlawful for you to knowingly \u00a0hire or continue to employ a person who cannot legally work in the United States. \u00a0You must complete a Form I-9 <\/a>\u00a0on each person that regularly works for you.<\/p>\n

If you will pay cash wages of $1800 or more to any one household employee, then you need to withhold and pay social security and medicare taxes and give that employee a Form W-2. \u00a0State and federal unemployment taxes may be due, also.<\/p>\n

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Household Employer’s Checklist<\/h3>\n<\/div>\n<\/div>\n<\/div>\n
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You may need to do the following things when you have a household employee.<\/em><\/p><\/blockquote>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/colgroup>\n\n\n\n\n\n\n
When you hire a household employee:<\/strong><\/td>\n\u25a1 Find out if the person can legally work in the United States.
\n\u25a1 Find out if you need to pay state taxes.<\/td>\n<\/tr>\n
When you pay your household employee:<\/strong><\/td>\n\u25a1 Withhold social security and Medicare taxes.
\n\u25a1 Withhold federal income tax.
\n\u25a1 Decide how you will make tax payments.
\n\u25a1 Keep records.<\/td>\n<\/tr>\n
By January 31, 2013:<\/strong><\/td>\n\u25a1 Get an employer identification number (EIN).
\n\u25a1 Give your employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement.<\/td>\n<\/tr>\n
By February 28, 2013 (April 1, 2013, if you file Form W-2 electronically):<\/strong><\/td>\n\u25a1 Send Copy A of Form W-2 to the Social Security Administration (SSA).<\/td>\n<\/tr>\n
By April 15, 2013:<\/strong><\/td>\n\u25a1 File Schedule H (Form 1040), Household Employment Taxes, with your 2012 federal income tax return (Form 1040, 1040NR, 1040-SS, or Form 1041).
\nIf you do not have to file a return, file Schedule H by itself.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

In January 1993, Clinton’s nomination of corporate lawyer\u00a0Zo\u00eb Baird\u00a0for the position of attorney general came under attack after it became known that she and her husband had broken the law by employing two illegal aliens from\u00a0Peru\u00a0as a nanny and chauffeur for their young child. They had also failed to pay\u00a0Social Securitytaxes for the workers until … Continue reading The Nanny Tax<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[39,399,38,37,36],"class_list":["post-606","post","type-post","status-publish","format-standard","hentry","category-federal-income-tax","tag-babysitters","tag-federal-income-tax","tag-home-health-care","tag-household-employee","tag-nannygate"],"_links":{"self":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=606"}],"version-history":[{"count":10,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/606\/revisions"}],"predecessor-version":[{"id":616,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=\/wp\/v2\/posts\/606\/revisions\/616"}],"wp:attachment":[{"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nw-cpa.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}