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HomeWork Solutions' Kathleen Webb

Kathleen Webb, the President and co-founder of HomeWork Solutions Inc. has worked with nanny employers to simplify Nanny Payroll and Nanny Tax Compliance since 1993.

Ms. Webb periodically updates household employers and nannies alike on issues related to household employment.

Ms. Webb can be reached at KathyAT4nannytaxesDOTcom

HomeWork Solutions Inc. (4nannytaxes.com) assists thousands of household employers with the "nanny taxes."

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Nanny Paychecks: Payroll Tax Holiday Extended (Maybe)

Posted by Kathy Webb on Sat, Dec 17, 2011 @ 09:00 AM
 

nanny paycheck calculatorMonday December 19, 2011 Update: What appeared a certainty two days ago is suddenly in jeopardy today. The House of Representatives is poised to reject the Senate's 2 month extension of the payroll tax holiday - insisting on a bill that funds the extension for a full year. We are watching this...

 

The temporary 2% reduction in employee Social Security Tax deductions, scheduled to expire December 31, has been extended two months may be extended two months, through February 2012, in a rare Saturday session of the US Senate. The bill is schedule to be voted on in the House of Representatives Monday December 19.

All household employers who pay their household employee directly (nanny, housekeeper, maid or elder caregivers) should recalculate their employee's payroll tax withholding prior to writing the first paycheck in 2012. Federal income tax withholding will change, as well as many state tax rates. The 4nannytaxes.com Household Paycheck Calculator is being continuously updated as rates are published. This is also a good time to ask your employee(s) to review their payroll withholding (Form W-4) and adjust exemptions where necessary.

Changes to tax rates, employer reporting, and employment rules and regulations have come at a rapid pace in the last several years. Employers who prefer to outsource the responsibility for compliance with new rules and regulations may consider HomeWork Solutions' full payroll service (NaniPay). Go ahead, simplify!

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Household employers interested in learning more about their Nanny Tax obligations, the process, and the various rules and recordkeeping requirements are invited to download our free e-Book.

Download HomeWork Solutions' free e-Book, the Nanny Payroll Tax Quick Start Guide.
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Comments

My employer pays me $15 an hour 55hrs a week. NO OVERTIME after 40hrs. No insurance. I asked her to give me a 1099 instead of a W2. FICA is withheld from my paycheck. Please advice what's best in this situation. Thanks
Posted @ Tuesday, January 03, 2012 1:15 PM by Mary
Mary, if your employer withholds FICA you should expect a W-2. This is GOOD because your employer is also paying their half of the Social Security taxes which on your income is $3280 (you paid through deductions $2420).  
 
Here's the thing - if you get a 1099 first you get no credit for the FICA withheld, PLUS you are responsible for the $3280 employer piece because you are considered your own employer. Don't go there! 
 
Additionally if your employer gives you a 1099 (which is illegal by the way) you won't have worker's comp insurance in case of a workplace accident, and your employer can be subject to fines and penalties if caught. Some day you might need unemployment - it is much harder to get if you were given a 1099 - you get it eventually but both you and your employer end up owing back taxes, not what you would want when you were unemployed, plus what do you do for income while you wait a month or more for things to go through?
Posted @ Wednesday, January 04, 2012 6:46 AM by Kathy Webb
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