Because how you make your payments will depend on your state we won’t cover that information here.įirst thing to know is that there are two broad types of taxes that you’ll need to know about: There are a number of taxes that you’ll need to pay for your nanny and the way in which you make those payments will depend on the state you live in. Taxes are perhaps the most complex part of paying a nanny if you decide to handle it yourself.
Not only does it save money, but it also provides a level of control and insight into the finances that hiring a service doesn’t.Īre you planning to handle your nanny’s payroll and taxes yourself? Read on to learn more about how to make the process as painless as possible. Many parents with a nanny decide to handle the finances themselves.
They charge $40 a month plus a $50 a month fee. The Nanny Savvy Payroll service, for example, is on the low end of that range. The monthly charge ranges anywhere from $40 to $100 a month. But most nanny payroll services won’t break the bank. And now you’ve added a cost on top of that. It can be a huge, and I do mean huge, relief to not have to deal with these details for working parents with young children. Payroll, deductions, and yearly tax time, they’ve got it covered. Such a service will handle all of the complexities and headaches you deal with if you do it yourself. The biggest benefit of hiring a professional service for paying your nanny is, well, everything. It also means that you’ll be able to run for office some day…if you choose to do so. It provides stability and an employment history. We’ll go ahead and assume you plan to employ your nanny “above the table.” You really should. The next big decision after you hire is to decide if you will handle the financial side of paying your nanny or offload that to a professional service. This is just as big of a deal as hiring her! Now it’s time to turn to how you will handle paying your nanny. It’s a big deal and a big accomplishment.
You’ve done it, you’ve hired your first nanny! You’re probably feeling proud, and you should, at deftly managing the hiring process.