08/12/2021
Is your nanny on the payroll?
If you pay (check or cash) your house employee more than $1000 in any quarter or more than $2300 annually, you are required to register for payroll, remit payroll taxes, issue a W2 and comply with DOL rules (disability and workers comp insurance). If you didn’t, and your babysitter or nanny gets hurt or fired, she/he will file a liability or unemployment claim against your household and then you are screwed. It’s is not easy to ask for forgiveness in this case. DOL and tax authorities will come after you for their share - back taxes, interest, penalties for late filings, actual payroll returns and additional accounting and legal fees. Don’t wait to get caught, prevent your losses by registering and filing payroll today.
Please reach out to me Anastasia Cooper, CPA if you need payroll advice.
718-708-2622
[email protected]