Calculating "Nanny Tax" Withholdings

Our no-work, no-worry service was created to make life at home easier for busy families.

Q:

So, I’m only supposed to pay the net amount each pay day? What happens to the taxes?

Answer: Yes, each payday your employee receives the net pay amount. The difference between the gross wages and the net pay are considered the employee’s “tax withholdings.” The tax withholdings remain in your bank account until they are due to the appropriate tax authority. At that time, we remit the employee tax withholdings and the employer taxes along with the appropriate employment tax returns (this process is addressed in detail in the Tax Filing & Remittance section).

Next: What if I had a payroll change I forgot to report?