Paying FICA and FUTA for Nannies

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Nanny Salaries & Taxes and other Nanny topics.

How are FICA and FUTA paid for nannies?

Paying FICA and FUTA for Nannies

FICA and FUTA nanny taxes should be a part of every employer's tax liability. The Household Employment Tax form, which is Schedule H, allows an employer to report and calculate both of these nanny taxes. Once the taxes are calculated, the numbers can be put on the 1040 tax form, and Schedule H is also filed with the tax return. For those who choose not to withhold taxes from nannies' wages, they must add 7.65% to a nanny's taxable income. If you still aren't sure about the exact amount of nanny taxes to be paid, you may want to consult your accountant or a reputable tax service for help. If you fail to pay the adequate amount of nanny taxes, you could be charged an interest penalty.

   

Comments

Nobody has commented on this tip yet. Be the first.



Name:


URL: (optional)


Comment:


Not finding the advice and tips you need on this Nanny Tip Site? Request a Tip Now!


Guru Spotlight
Candi Wingate