A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated.
Recent job statistics indicate that more employers are using part-timers to deal with variations in workload and for short-term projects. Here are a few tips your business will find useful if you hire part-time workers.
Remember the Nanny Tax - Do you have a household employee?
Word of the Year - Are you current with the New English?
The Extension that Never Ends
The Month of December:
Take final year-end actions: • Gifts • Capital gains/losses • Charitable giving • Dividend income December 24th: Last day of Chanukah December 25th: Christmas Day December 26th: Kwanzaa Begins January 15th: 4th Quarter Estimated Payments Due
As you review your filing requirements for 2013, make sure you don't overlook the so-called "nanny tax." If you have a household employee, you could be liable to pay state and federal payroll taxes.
First, you must determine whether you have a household employee. Generally, this is someone you hire to work in or around your house. It could be a babysitter, nurse, maid, housekeeper, or gardener. It doesn't matter whether they work part-time or full-time, or whether you pay them hourly, weekly, or by the job.