Late payment of employment taxes will trigger penalties and interest charges to the taxpayer. The notices for an IRS late tax penalty are next to impossible to decipher. Statute of Limitations on IRS Interest and Penalty Calculations There is NO statute of limitations on the failure to file and report payroll taxes (Social Security, Medicare,… Read more »
The nanny tax wage test, the minimum amount of wages paid that obligates the household employer for household employment taxes, is $2,700 of wages paid to an employee in the year 2024 (or $1,000 paid total in a calendar quarter for FUTA tax). HomeWork Solutions, Inc., May 2024 Nanny tax legislation enacted in 1994 dramatically… Read more »
The Virginia Department of Revenue is requiring e-filing of employer withholding tax returns and payments. Here are some tips for filing and paying the Virginia employer withholding tax. Household employers find that eForms is an easy and intuitive filing scheme. Whether you have little to no computer experience or you are an expert, eForms is the… Read more »
Household employers will incur significant incorrect Form W-2 penalties if there are name and Social Security number mismatch problems. The Social Security Administration returns incorrect forms W-2 (name and Social Security number mismatch problems) to employers for corrections. The Internal Revenue Service assesses penalties to household employers filing Forms W-2 with mismatched names and Social… Read more »
What Household Employer Tax Breaks Can Families Leverage? There are two popular household employer tax breaks for families to make care more affordable. A family may only use up to $6,000 paid to a nanny or senior caregiver (qualified expenses) in any particular year. These tax breaks are not income-restricted. They do require, however, that… Read more »
When you hire a nanny you may qualify for a childcare related personal income tax breaks. There are two popular strategies that families with child care expenses use to minimize their personal income taxes and are in addition to the Child Tax Credit, which in 2018 rose to $2000 per child and is available to… Read more »
Yes. The 1995 Federal legislation, the “simplification” of the nanny tax rules, began a cascade of changes that continues today. Nanny tax rules alone are not the only regulations the household employer must follow. Numerous changes to federal and state labor laws specifically impact household employers. Federal Employer Identification Number required for all household employers…. Read more »
