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Household Employees And Employment Taxes

Household employees and employment taxes

  • Did you know that if you have a household employee (this is most commonly nannies or people that are employed inside your household doing household tasks on a permanent basis) that you really should be withholding and paying self-employment taxes or at least a portion of those self-employment taxes on that person.
  • Easiest way to take care of it is to hire a company to do your payroll for you. We can recommend the big payroll companies, but there are lot of other options which check with your CPA or your tax preparer, on the best way to handle household employee taxes.
  • Sometimes they will also show up on schedule H inside your personal tax return, so if you’re seeing a schedule H, your tax preparer is making sure that you’re covered.

Hey everyone. This is Shauna Wekherlien here for taxgoddess.com. Did you know that if you have a household employee, this is most commonly nanny’s or people that are employed inside your household doing household tasks on a permanent basis, that you really should be withholding and paying self-employment taxes or at least a portion of those self-employment taxes on that person.

Easiest way to take care of it is to hire a company to do your payroll for you. We can highly recommend of course the big payroll companies, but there’s lots and lots of options out there, so make sure you check in with your CPA, your tax preparer, on the best way to handle households employee taxes.

Sometimes they will also show up on schedule H inside your personal tax return, so if you’re seeing a schedule H, great job. Your tax preparer is making sure that you’re covered. If you’re not, make sure you’re having a discussion with your CPA, with your tax preparer, that you are being covered and are doing what is necessary and required for the types of services that you have.

Hope you’re having a great day. If you have any questions again, feel free to reach out to us at taxgoddess.com. Shauna for taxgoddess.com, the tax goddess herself. Love talking to you guys about these tax tips. Talk to you later. Bye.

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