Welcome!We’re Here to Help Right Now
Families in a NannyShare or hiring part-time or short-term caregivers have a unique tax break opportunity
Families who hire on a short-term (i.e. summer nannies), part-time or shared
basis have a unique tax advantage. Since employer taxes are tied to wages, these
families typically have a much smaller tax obligation but still get to take full
advantage of the tax breaks. Here's an example:
The Smiths hire a summer nanny and pay her $500 per week for 13 weeks ($6,500 total).
The Smiths have access to a flexible spending account at work, which allows them
to pay for up to $5,000 of childcare-related expenses using pre-tax dollars. This
saves them $2,300. Meanwhile, the Smiths owe about $600 in employer
taxes. The net savings for the Smiths is $1,700!
As you can see, legal pay pays off – especially in short-term, part-time or NannyShare employment
Next: Traveling With Your Employee
Get expert answers
to all your nanny tax questions.
Learn how we work with Accountants, Attorneys, Financial Advisors and Placement Agencies to expertly handle "nanny tax"
We are proud to be the household payroll expert for Care.com, the world’s largest online destination for care.