January 24, 2012
If you employed a domestic worker during 2011 and paid $1,700 or more, there are two important "nanny tax" deadlines that are quickly approaching:
Your state requires household employers to file employment tax returns by January 31. (Your state may also require you to file an Annual Reconciliation as part of the year-end process).
You are required to prepare Form W-2 and distribute it to each employee no later than January 31. (Important Note: Don't use Form 1099, which is for independent contractors. The IRS has ruled that domestic workers should be classified as employees and misclassifying your employee as an independent contractor can expose you to felony tax evasion charges and expensive penalties).
If you're a Breedlove client, we have all your obligations covered. If you're not a client and you want help meeting the state and federal deadlines, just complete our Secure Online Registration and we'll take care of everything.