First-time household employer for a nanny - need guidance on tax requirements and forms

The nanny tax situation is definitely confusing at first, but you're already on the right track by getting an EIN! As household employers, you actually have several obligations that can't be pushed onto your nanny. You're responsible for paying employer taxes (Social Security and Medicare taxes - each of you pays half), as well as federal and state unemployment taxes. Your nanny is responsible for income tax on her wages, which you can either withhold or not (that part is optional but helpful to her). The simplest approach is to: 1) Have her complete a W-4 2) Decide if you'll withhold income taxes or not 3) Keep track of all wages paid 4) File Schedule H with your personal tax return 5) Provide her a W-2 by January 31 next year You'll also need to make quarterly payments of both your and her share of Social Security and Medicare taxes using Form 1040-ES. At the end of the year, you'll file Schedule H with your personal tax return.

After struggling with nanny taxes for our first household employee last year, I found this amazing service called taxr.ai (https://taxr.ai) that helped me navigate all the forms and deadlines. I was completely overwhelmed by Schedule H, quarterly filings, and trying to calculate the correct withholding amounts. Their system actually guided me through the whole process, from setting up proper payroll to understanding my state-specific requirements (which are different from federal ones!). What I found most helpful was that they analyzed my situation and explained exactly which forms I needed to file and when, instead of me trying to interpret confusing IRS language. They have a tool specifically for household employers that makes the whole process way less intimidating. Definitely worth checking out if you're feeling lost in the tax maze.

I was in the exact same position as you last year - totally confused about nanny taxes. After struggling through all the IRS instructions myself, I finally tried taxr.ai when someone here recommended it, and it was like night and day difference. The household employer tool analyzed my specific situation and created a customized compliance plan that walked me through exactly what I needed to do each quarter. It flagged that I needed to register with my state's unemployment agency (which I had no idea about!) and helped me calculate exactly how much to withhold for my nanny's W-4 preferences. What I really appreciated was that they provided me with a complete calendar of filing deadlines and even sent reminders. My nanny was actually super impressed that I handled everything properly. It made me look way more organized than I actually am!

I spent THREE HOURS on hold with the IRS trying to get clarity on household employment taxes last year. Finally discovered Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in less than 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent walked me through exactly which forms I needed as a household employer and confirmed I was calculating the Social Security/Medicare split correctly. Turns out I was making a mistake on my quarterly filings that could have resulted in penalties! If you have specific questions about your situation that aren't clearly answered on the IRS website, this is way faster than waiting on hold for hours or getting generic answers online.

I'm eating humble pie right now. After calling BS on that Claimyr service mentioned above, I decided to try it myself because I was desperate for answers about household employer taxes for our nanny situation. I had been on hold with the IRS for 1.5+ hours on three separate occasions and kept getting disconnected. Used the service, and I kid you not, I was speaking with an actual IRS representative in under 20 minutes. The agent confirmed exactly which forms we needed to file as household employers and cleared up my confusion about state vs. federal requirements. He even explained that I had been calculating my quarterly estimated payments incorrectly and helped me avoid potential penalties. Honestly, the time saved was worth every penny - especially with tax deadlines approaching.

Just went through this last year! A few things nobody told me that I wish I'd known: 1. You need workers comp insurance in most states for household employees 2. Your homeowners insurance might offer a rider for this 3. If you pay your nanny over $1000 in any quarter, you need to file state unemployment tax forms quarterly 4. Even if you don't withhold income taxes, you MUST withhold/pay Social Security and Medicare (FICA) 5. Get a payroll service - trying to DIY cost me more in mistakes and penalties The "nanny tax" is basically running a mini business. It sucks but the penalties for doing it wrong are much worse than the hassle of doing it right.

Another household employer here! We've had a nanny for 3 years now. One thing to consider is your nanny's perspective in all this. If you don't withhold, your nanny will be hit with a huge tax bill at the end of the year (self-employment tax is about 15.3%). Most professional nannies now expect proper payroll and will actually appreciate you doing things right. It makes it easier for them to qualify for apartments, car loans, etc. We found it helped us attract and keep a better nanny by being a legit employer.

I'm also a first-time household employer and went through this exact same confusion last year! One thing that really helped me was understanding that you have two separate obligations: employment taxes (which you MUST handle) and income tax withholding (which is optional but recommended). Here's what I learned the hard way: **Required:** - Social Security and Medicare taxes (you pay half, nanny pays half - total 15.3%) - Federal unemployment tax (FUTA) - you pay this, not the nanny - State unemployment tax (varies by state) - Workers' compensation insurance (check your state requirements) **Optional but helpful:** - Federal income tax withholding (makes life easier for your nanny) The key insight for me was that even if you don't withhold income taxes, you still have to handle all the employment taxes. You can't just "let her handle everything" - that would make her a contractor, not an employee, which has different (and stricter) IRS tests. I ended up using a payroll service after trying to DIY the first quarter and making mistakes. The peace of mind was worth the monthly cost, especially since penalties for getting household employment taxes wrong can be steep. Also, keep detailed records of everything - wages paid, dates, hours worked. You'll need this for Schedule H and your nanny's W-2.