Babysitter Payroll & Tax Services

As a household employer, your obligations include not only federal taxes like income tax withholding, Social Security, Medicare, and federal unemployment tax (FUTA), but also state unemployment tax (SUTA) and any local tax requirements. Our process ensures compliance at both the federal and state levels, handling federal taxes quarterly and adjusting for state filing requirements—whether they are weekly, monthly, quarterly, or annually. Additionally, we ensure you meet local tax obligations, offering a more complete service compared to leading competitors.

The nanny tax refers to the federal and state employment taxes you must pay when you hire a household employee, such as a nanny. These taxes include social security, Medicare, and unemployment insurance, which you generally must pay on a quarterly basis.

In a nanny share, each family is a household employer, and is responsible for their portion of the nanny's wages and payroll taxes. We can help manage payroll for nanny shares, ensuring compliance with all tax obligations for both families.

Yes, most states require household employers to carry workers' compensation insurance to cover medical expenses and lost wages if a household employee is injured on the job. Even in states that do not require it by law, HomeWork Solutions recommends employers secure coverage to ensure they are protected in the event of a workplace injury.

Using a nanny payroll service like HWS simplifies tax withholding, filing, and compliance, ensuring that all employment taxes are handled correctly, a process the IRS estimates would take an employer approximately 60 hours to complete on their own. Our service also provides additional benefits such as time tracking, leave accrual, tax notice management, and secure online access to payroll records.

Yes, household employers must comply with federal, state, and local minimum wage laws, ensuring that employees are paid at least the applicable minimum wage for all hours worked. The specific rate can vary by state, so it's important to adhere to both federal and local regulations.

At the end of each calendar year, household employers are required to prepare and issue a W-2 form to their employees, summarizing wages and the taxes withheld. HomeWork Solutions can handle this process for you, ensuring that the W-2 form is accurately prepared and delivered to your employee on time. We also take care of filing the form with the Social Security Administration, ensuring compliance and accurate reporting of your employee's earnings.

As a household employer, you are responsible for making employer contributions to Social Security and Medicare taxes, which are matched to the amounts withheld from your employee's wages. HomeWork Solutions simplifies this process by calculating, reporting, and paying these contributions on your behalf. We ensure that all required payments are made to the IRS on a quarterly basis, keeping you compliant with federal regulations and freeing you from the administrative burden.

A casual babysitter, especially one under age 18 who is a student, is not considered a household employee and is not subject to employment taxes, according to IRS guidelines. However, once a babysitter is over age 18, regardless of whether they are a student, they are considered a household employee, and the employer must withhold and pay employment taxes.