According to the IRS “Nanny taxes are Social Security and Medicare (FICA) taxes, and you’re legally obligated to withhold them from your employee’s earnings if you pay them $2,200 or more in calendar year 2020”. If you hire a household employee and pay them directly, they are your employee. The short answer is Yes, you must pay payroll taxes. You may have heard from friends that they do not pay nanny taxes, instead choosing to pay them “off the books” or “under-the-table”. This practice, while common, is illegal and there are significant risks associated with it.

Paying your nanny legally is the right thing to do. When you and your nanny agree to pay ‘off the books’ you are mutually agreeing to break the law. What message does that send to your nanny? Choose The Right Nanny encourages all families to pay fair and legally. In addition, there are severe penalties imposed by the IRS if it is discovered you didn’t pay taxes on your employee. CTRN employs our temporary team, and as such, pay all of the appropriate taxes.

For information regarding fair and legal pay, Learn more —–>