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Pay Household Payroll Tax to Avoid Trouble for the Nanny and the Employer
Posted On : Jan-24-2012 | seen (753) times | Article Word Count : 423 |
A household employer is a person who hires staff on a permanent basis to do assigned jobs in or around their home. A household employer is a person who hires staff on a permanent basis to do assigned jobs in or around their home. It can be a nanny Cheap Rougned Odor Jersey , cook, private nurse or even a housekeeper. In other terms, when a person assigns work or responsibilities and even determines the working hours of another person, the person is considered to be a household employer.

Generally, people do not give much attention to household payroll Cheap Nolan Ryan Jersey , like nanny payroll, as they find it irrelevant to pay it to the IRS department. But, it is important to figure out the right amount for taxes as well as to pay the extra amount for hiring an employee. Although every household employer doesn''t have to pay and file payroll taxes, but the amount exceeding $1,700 in a year is entitled to pay nanny tax.

Like any other employer Cheap Adrian Beltre Jersey , you are also responsible to withhold some portion of the salary and remit all of them to the tax department. The nanny payroll tax involves social security, Medicare taxes, state and federal income taxes. Although there are many nanny payroll calculators that make the complex calculations simpler for the household employers, but it is advisable to take help from payroll experts.

There are various online payroll companies that offer nanny payroll services to help household employers pay and file nanny taxes accurately and timely. However, nannies are hesitant in withholding the amount from their salary every year. Therefore Cheap Ivan Rodriguez Jersey , it is essential for an employer to help them know about the benefits of paying nanny tax.

When the employer pays tax, the amount for social security and Medicare is withheld from the nanny''s salary. But, it becomes necessary for the employer to pay federal unemployment taxes. It is a benefit for a nanny as they get paid for up to six months due to their unemployment for no fault of their own. Moreover, they are also entitled to take benefits for social security and Medicare programs.

When a person is employed, they have a better chance to get a loan Wholesale Rangers Hats , take health insurance, apply in other jobs and even apply for a credit card. The person who is working for an employer will not like to stay away from such benefits. Therefore, it is important to have legitimate employment status.

So, it is a win-win position for both the employer and the employee. If you are having problem is making accurate payroll calculations, you must take online payroll services to make your nanny payroll accurate and on-time.
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