Best Tax Preparation Services in Orland Park, IL

Federal nanny taxes (Social Security, Medicare, income taxes, and federal unemployment) are generally paid with your federal income tax return via Schedule H.

Federal and state unemployment taxes fund unemployment benefits paid to workers who have lost their jobs. Each state has a different method for determining your unemployment taxes and tax rate. If you pay state unemployment taxes, you can get a credit toward federal unemployment taxes.

The IRS and your state calculate penalties for late filings and late payments. Each state has a different schedule for penalties and interest. For example, Illinois imposes a minimum penalty of $50, plus 2% interest per month for late unemployment tax filing. Clearly, filing nanny taxes late can be very expensive.

It is unlawful to employ a person who cannot legally work in the United States. When you hire a household employee, you and the employee must each complete part of the Form I-9, Employment Eligibility Verification. You must verify that the employee is either a U.S. citizen or an alien who can legally work in this Country. You must keep Form I-9 with your other employment records.

Your household employee will need to provide you with a completed I-9 form and you need to review the documents the employee provides to you to ensure she is eligible to work in the US. She also needs to provide you with a completed federal W-4 form and possibly a state income tax withholding form.