April 25, 2008, Newsletter Issue #112: Paying FICA and FUTA for Nannies
Tip of the Week
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.
About LifeTips
Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.
