The hardest part of hiring a nanny is finding the perfect candidate—or so you thought when you started looking. But now that you’ve located your real-life Mary Poppins, the actual hardest part of hiring a household employee starts to set in: paying their taxes.
But before you can think about nanny tax services, you have to get a federal Employer Identification Number (EIN) so you can pay their taxes. You have to fill out the right documents to report the new hire to your state government. Based on where you live, you might need workers compensation insurance. And at the end of the fiscal year, you need to file all tax paperwork to the IRS and distribute the right forms to your household employees so they can track their taxes too.
Remember when you thought hiring a nanny was going to simplify your life? Ah, the good old days.
Here’s the upside, though: it’s not hard to find a household payroll service that handles just about every aspect of paying your nanny (or your gardener, babysitter, nurse, or house cleaner). Read on to see our favorite nanny payroll services for household employers.