The No-work, No-worry Solution to Paydays, Tax Time and All Points in Between
We’ve taken the work and worry out of the household employment obligations by partnering with HomePay, the nation’s most respected household employment payroll & tax specialist.
We know families today have a lot going on and the thought of figuring out nanny taxes can be stressful and confusing to parents. Many families decide to pay their nanny “under the table” in order to save themselves the trouble of figuring it out and to avoid the hassle of paperwork. While this does save time and effort, it is illegal and not fair to your nanny. The good news is that nanny taxes don’t have to be an overwhelming prospect!
We recommend HomePay to all of our clients when they come to us with payroll and tax related questions. They have been in business since 1992, offering comprehensive household payroll and tax services to families nation-wide.
HomePay’s Comprehensive, Guaranteed Service Handles All Your “nanny Tax” Obligations
- Register for federal and state tax accounts
- Complete and file New Hire Report
- Calculate the correct amount of taxes to withhold each pay period
- Track gross pay, net pay, and taxes withheld
- Prepare state tax returns and remit taxes quarterly
- Prepare federal tax estimates four times per year and remit both the employer and employee taxes
- Prepare year-end summaries to state tax agencies
- Prepare Form W-2 and distribute to your employee (and any former employees who had wages during that calendar year)
- Prepare Form W-3 and send to the Social Security Administration (along with Form W-2 Copy A)
- Prepare Schedule H to accompany your personal federal income tax return
- Respond to IRS and state notices/inquiries
- Monitor ever-changing household employment tax law
DO YOU NEED TO PAY EMPLOYMENT TAXES?
If you pay cash wages of $2,300 or more in 2021 to a household employee, you must withhold and pay Social Security and Medicare taxes (Your share is 7.65% of cash wages).
IMPORTANT NOTE FOR EMPLOYERS OF TEMPORARY NANNIES:
If you pay any single individual less than $2,300 (2021) in a calendar year, you are exempt from the nanny tax obligations listed above. However, you are still legally considered a household employer and, therefore, must meet all applicable labor laws.
Most states have unique laws and requirements when it comes to household employee taxes and payroll. For more information on Montana’s specific requirements, visit Montana’s Tax and Labor Law Summery on HomePay’s website.
For more information about your obligations as a household employer and HomePay’s No-Work, No-Worry service, click here to watch their 3-minute Nanny Tax Video.
FREE PHONE ORIENTATION
As a client of Big Sky Nanny, we’ve arranged for you to receive a complimentary phone orientation at your convenience. You don’t need an appointment. Just call 1-888-273-3356 and a HomePay expert will assess your individual situation, run payroll & budget scenarios, help you capitalize on tax breaks and answer any questions you may have.
We encourage you to take advantage of this valuable guidance. Whether you use HomePay’s comprehensive service or not, we’ve found that this quick phone call helps families avoid tax and legal mistakes that can be expensive and time consuming. Just give them a call Monday – Friday anytime between 7:00 am and 5:00 pm and let them know Big Sky Nanny referred you!
Calculate your tax costs and tax breaks using HomePay’s free Nanny Tax Calculator
You’ll be work-free and worry-free by the next business day.
To get your payroll started, here’s HomePay’s secure online registration form.