Tax Information for Nannies

Nannies should address the issue of payroll taxes with their employers before beginning employment. If you earn more than $1500 from any one family over the course of the tax year, they are responsible for reporting that income and paying certain employer taxes on it. They should give you a 1099 form at the end of the year that reports these amounts. Some employers will even withhold your taxes for you, but you have to ask them up front!

Regardless of whether or not your employer withholds taxes for you, you must keep track of how much you earn from ALL families that you work for, so you can report your income and pay taxes at the end of the year. You might find it helpful to set some money aside each month to put towards your taxes at the end of the year. The payroll calculator found at http://www.breedlove-online.com/taxes.html will help you determine how much money you will be responsible for at the end of the year.

Please read "Being Smart and Being Legal," a document provided by Breedlove and Associates, the nanny tax experts.