Nannies

[Sunshine1]

Ok, I have a question for all you Accountant savy people.

We have a special needs son that requires above and beyond regular care in a daycare setting.  Therefore I need to hire a nanny for the summer and hopefully hang on to her after that.

BF is required to pay a portion of daycare expenses.  Our state also just went to the shared income model.  What do I need to provided or what kind of documentation do I need to submit to CS for his portion?

Also...for tax purposes, anyone know how that works for a "house employee"...what does the IRS need?

[Jade]

>Ok, I have a question for all you Accountant savy people.
>
>We have a special needs son that requires above and beyond
>regular care in a daycare setting.  Therefore I need to hire a
>nanny for the summer and hopefully hang on to her after that.
>
>BF is required to pay a portion of daycare expenses.  Our
>state also just went to the shared income model.  What do I
>need to provided or what kind of documentation do I need to
>submit to CS for his portion?
>
>Also...for tax purposes, anyone know how that works for a
>"house employee"...what does the IRS need?


The first thing that you need to do is put her on the books.  Are you going to have a contract?  When I was a nanny, it was a year contract that clearly spelled out how much was paid and what the duties are.  

That will be sufficient for the courts.  

Now for the IRS.  You will need a copy of the social security number.  The nanny will need to fill out a W-4 stating what her withholdings are.  And you will need to contact the IRS to send you the paperwork (along with a tax table of how much to withhold), FICA is pretty standard.  You pay a percentage (part of the cost of the nanny so be sure to include this when giving paperwork to the courts for proof of how much you are paying).  You also have State taxes (if applicable), unemployment and disability tax.  

Your best bet is to contact an accountant who deals in taxes to help you set this up.  

[mistoffolees]

>Your best bet is to contact an accountant who deals in taxes
>to help you set this up.  


Another option is to hire her through a local nanny agency. They'll add a small percentage to your total cost, but will save you all the paperwork and IRS worries.

[Jade]

>
>>Your best bet is to contact an accountant who deals in taxes
>>to help you set this up.  
>
>
>Another option is to hire her through a local nanny agency.
>They'll add a small percentage to your total cost, but will
>save you all the paperwork and IRS worries.

Went through an agency with the last family that I worked for.  The agency doesn't handle the tax withholding or reports necessary.  What the agency does is supposedly run a back ground check on the candidate.   Agencies (in my state, which is a high cost of living state) usually charge a minimum of $1,000 to place a nanny.  

Not trying to be argumentative, just pointing out my experience with an agency.  

[mistoffolees]

>>
>>>Your best bet is to contact an accountant who deals in
>taxes
>>>to help you set this up.  
>>
>>
>>Another option is to hire her through a local nanny agency.
>>They'll add a small percentage to your total cost, but will
>>save you all the paperwork and IRS worries.
>
>Went through an agency with the last family that I worked for.
> The agency doesn't handle the tax withholding or reports
>necessary.  What the agency does is supposedly run a back
>ground check on the candidate.   Agencies (in my state, which
>is a high cost of living state) usually charge a minimum of
>$1,000 to place a nanny.  
>
>Not trying to be argumentative, just pointing out my
>experience with an agency.  

Then you chose the wrong agency. There are plenty of agencies who handle the taxes - even in my modest sized city.