When you hire someone to work in your home, like a Caregiver, the government considers you an employer. As the employer of record you are responsible for paying employment taxes. These employment taxes are commonly known as “nanny taxes” although they do not only apply to nannies. They are for anyone working in your home, also known as a domestic worker or household employee. There are two components of nanny taxes: what the employer has to contribute and the employee withholding.
The employer contribution includes Social Security, Medicare, federal unemployment and state unemployment taxes. The employee withholding includes Social Security and Medicare and possibly federal, state and city income taxes. Well Beyond Care facilitates the withholdings that are necessary to be in compliance with Federal and State tax requirements as part of its payroll service.
(for more tax information and assistance, click on the Tax Info tab above)