Best Payroll and Timekeeping Services in Broomfield, CO

Nanny and household payroll taxes are the employee and employer taxes that are due to the government as a result of having a household employee. Taxes vary by locality, but typically, these taxes will include Social Security and Medicare, federal and state income taxes, and federal and state unemployment insurance. In certain localities, other state and local taxes also might be due.

Nannies, and most other household employees, should be treated as employees, which makes the family a household employer. This determination is based on IRS guidelines, which provide criteria on how to classify employees. The key feature is control. If you control the parameters of the work including how and when the work is performed, you are an employer.

The employer needs to report every new hire to the state. There also are monthly, quarterly, and/or yearly reports that need to be filed with your tax payments. In addition, a W2 form should be issued to each employee, year-end forms need to be filed with the state and Social Security Administration, and a Schedule H needs to be filed with your personal income tax return. NannyChex handles all these items as a regular part of our service.

Currently, under the Patient Protection and Affordable Care Act, employers with under 50 employees are not required to offer a health insurance policy.