We wrote about the Nanny Tax rules in our April, 1997 newsletter which you can still access at:

http://www.mdtaxes.com/news0497.html


One change from 1997 is that the amount a nanny can earn before you need to worry about social security and Medicare taxes has increased to $1,500 per year.

Zip Code: cpa@mdtaxes.com

I suggest you get a copy of Schedule H, Household Employment Taxes and read the related instructions. It will give you most of the information you need.

Also, depending on your state, you may have to provide Worker's Compensation coverage, which covers them if they are injured on the job. In Ohio you have to cover domestic employees more or less immediately.

Zip Code: garyd@davisandbrandel.com