Are you "Upper Middle Class"?

[Dugout DickStone]

i don't think a household is a business.  it would essentially be the same thing, but the responsibility should fall on the nanny, not the household.  just seems overly complicated.

Don't care either way FICA withholding isn't a tax to the employer

The employer has to match fica, whiz bang

This is just one reason why kids should be required to a take a financial literacy class in highschool. There are actually dumbasses in this thread who didn't realize that employers are required to pay a matching 7.65% for FICA/MC. Then there's state and federal unemployment tax, too.

Is your nanny a full time salaried employee?

No. Do you seriously think that you have to be "full time" or "salaried" to be subject to FICA/MC/UT? Yeah - you probably do.

Totally

[star seed 7]

a nanny seems like an employee to me?  at least at the threshold they set

There's no "seems" about it. They are a "household employee" under IRS regs.

i called the kansas nanny tax stupid you rough ridin' idiot, not you complying with it

[star seed 7]

i don't think a household is a business.  it would essentially be the same thing, but the responsibility should fall on the nanny, not the household.  just seems overly complicated.

What difference does it make where the employee works?

the nanny is the business owner, the household is the customer.  making the household responsible for anything but payment of services is rough ridin' stupid

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Can you imagine if they let fast food industries or grocery stores pay their hourly workers as independent contractors???

 

I'm all for ditching fica, but c'mon.

[star seed 7]

if you can't see the difference between actual business and a household, then you are rough ridin' stupid

[puniraptor]

Nanny should be just like a home daycare. It's just delivered daily.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

i don't think a household is a business.  it would essentially be the same thing, but the responsibility should fall on the nanny, not the household.  just seems overly complicated.

What difference does it make where the employee works?

the nanny is the business owner, the household is the customer.  making the household responsible for anything but payment of services is rough ridin' stupid

I understand what your saying, guy, but that's not how it works. The nanny is an employee of the parents.

The IRS is very skeptical of any "independent contractor" who derives all income from a single employer and works full time.

[star seed 7]

i can't believe the neocons aren't in agreement with me here, very puzzling

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

a nanny seems like an employee to me?  at least at the threshold they set

There's no "seems" about it. They are a "household employee" under IRS regs.

i called the kansas nanny tax stupid you rough ridin' idiot, not you complying with it

You think the IRS makes kansas regs?

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

i can't believe the neocons aren't in agreement with me here, very puzzling

You're wrong about the law.

You're the only one discussing it's merits, I think

[wetwillie]

I bet he's getting his money's worth if you know what I mean.

[star seed 7]

i can't believe the neocons aren't in agreement with me here, very puzzling

You're wrong about the law.

You're the only one discussing it's merits, I think

i'm not wrong about the law, i'm saying it's a stupid law.  good god you are a rough ridin' troglodyte

[K-S-U-Wildcats!]

i can't believe the neocons aren't in agreement with me here, very puzzling

To be clear, a nanny&employer don't owe FICA/MC unless she earns at least $1,900 in a calendar year. So that's going to include most part-time or full-time nannies, but it's not going to include the occasional babysitter. So at least there's that.

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

i can't believe the neocons aren't in agreement with me here, very puzzling

You're wrong about the law.

You're the only one discussing it's merits, I think

i'm not wrong about the law, i'm saying it's a stupid law.  good god you are a rough ridin' troglodyte

 

[star seed 7]

you should reread the last 2 pages, i think maybe you got confused again.  very understandable for such a huge idiot

[star seed 7]

sane person: pot should be legal in kansas
FSD:  nope you're wrong about the law, it's illegal

[Fake Sugar Dick (WARNING, NOT THE REAL SUGAR DICK!)]

Welcome to Meltdown City, USA, population 7

[K-S-U-Wildcats!]

Welcome to Meltdown City, USA, population 7

Nice. But I also kinda like seven. He's growing on me.

[star seed 7]

i am a very likable person

[Rage Against the McKee]

I think K-S-U's nanny business would be way more successful if he'd just find an illegal immigrant to pay cash to.

[K-S-U-Wildcats!]

I think K-S-U's nanny business would be way more successful if he'd just find an illegal immigrant to pay cash to.

Well I'm sure I could find all sorts of ways to break the law, but I'm not going to do that.

[steve dave]

does your nanny watch all 4 kids or are some of them in school? what hours do they work? how much do you pay them? I'm asking for personal reasons and not trying to get involved in this nanny tax discussion.

[8manpick]

That nanny tax link a couple pages back made it pretty clear that the employer tax burden was 2% after tax breaks. The example was $500 salary, $50 employer tax, $40 employer tax breaks.

[K-S-U-Wildcats!]

That nanny tax link a couple pages back made it pretty clear that the employer tax burden was 2% after tax breaks. The example was $500 salary, $50 employer tax, $40 employer tax breaks.

That's not quite right, but close enough. I already factored those tax breaks (the child care deduction) into calculating my true tax rate. Again, true tax rate is a simple calculation: total taxes paid / gross income.

[8manpick]

By two percent, I meant two percent of the nanny's pay, which I assume would be like 0.4% of gross income otherwise you probably shouldn't have a nanny