True or False: There is a Special Nanny Tax

The following is an article Re-Posted With Permission From Nancy Parker of eNannySource, Connecting Families With Caring Nannies Since 2001

In reality, there is no such thing as a ‘nanny tax’. There are no unique taxes that apply only to nannies.  However, the term nanny tax does refer to some real taxes that employers of nannies do need to pay, just like employers of other types of workers are responsible for paying their share of employment taxes. For a detailed breakdown you can look at IRS Publication 926 as it is the Household Employer’s Tax Guide.

The term nanny tax originated because of well-known nanny employers who had not paid in the appropriate taxes. The employment tax rules are a bit different for household employees (which is the classification that a nanny fits into), than they are for other employees, so it can be confusing.

The first item that you need to consider when deciding whether or not you may owe ‘nanny tax’ is how much money you paid for in-home daycare during the year. For 2011, $1,700.00 is the magic number. If you paid more than this amount for in-home daycare during the year, then you are required to report and pay employment taxes on the wages paid to that in-home provider.

There are exceptions to this rule, of course. Most family members: spouse, parents, or a child under twenty-one would be exempt. Also, anyone under 18 years old, who is not working as a nanny as their primary occupation, such as a high school student, would be excluded.

And what are these ‘nanny taxes’...    To view the remainder of this article please visit Nancy's eNannySource site here .

We thank Nancy for a great article and for allowing us to re-post a portion of it here for our readers. There are a couple of ways you can use to see your articles here on our site.  One, you can visit a site called Blog Carnival and submit all your article's specifics such as the URL of the blog where the article is at,  title and author and so on.   The Second way is to do as Nancy has done.  Send an e-mail to Director@olinepublishing.com with the URL of the article and other specifics. The difference of these two methods is in,  how they will appear here on our site. The first method through Blog Carnival, your article will appear along with a long list of other articles the first Friday of the next month, as a feature post.  The second method, highlights your article all by itself with a link back to your site for the remainder/conclusion of your article.   Naturally, with both methods we don't publish any that are unChristian in nature and that are not family reading ready. We would love the idea of having several weeks 'backup' of articles waiting to be highlighted, and especially if the articles were writen by a Christian teens detailing the way it feels to be a Christian teen in today's world.   Lastly, we would love to publish a whole variety of articles as long as they meet the above specifics.   Please don't second guess your article as not 'worthy' or good enough!  Allow us that privilege, just e-mail or post your articles, please!  Again, thanks Nancy, God bless!

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Roy Twogood Jr. is Managing Director of OLIN e-Publishing Company and OLINeBooks, Denver Colorado- http://www.olinepublishing.com/ . Please feel free to re-post any article here as long as any URL's and this byline remain somewhere within the re-post. Thanks and God bless!

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