May 23, 2008, Newsletter Issue #116: Preparing Nanny Taxes

Tip of the Week

If you have decided to do the taxes for the nanny salary, consult IRS publications 926 and 15. These explain the federal laws and tax forms. IRS estimates it takes 8 hours to complete federal nanny tax forms. Also contact your state revenue department for information about the state income tax laws and forms. Finally, you should contact your state department of unemployment regarding their filing requirements for nanny taxes.

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