Comments on: Nanny Taxes http://theapna.org/blog/2006/11/30/nanny-taxes/ Tue, 06 Jan 2009 02:56:22 +0000 http://wordpress.org/?v=2.0.5 by: Tom Breedlove http://theapna.org/blog/2006/11/30/nanny-taxes/#comment-14891 Mon, 08 Oct 2007 22:46:32 +0000 http://theapna.org/blog/2006/11/30/nanny-taxes/#comment-14891 Paying your nanny legally provides many benefits to her and it’s not as expensive or difficult as people think. In fact, tax breaks such as the Dependent Care Account (also known as Flexible Spending Account) offered by many companies can save families as much as $2,300 per year — which offsets most if not all of the employer’s tax cost. Nor does it have to be time-consuming. There are firms like ours (Breedlove & Associates) that specialize in handling all the payroll and tax paperwork for busy families. If none of that motivates you to pay legally, do it for your nanny. She’ll get all the benefits enjoyed by other professionals (social security, medicare, unemployment, disability/workers’ compensation, credit worthiness, earned income credit, etc.). Paying your nanny legally provides many benefits to her and it’s not as expensive or difficult as people think. In fact, tax breaks such as the Dependent Care Account (also known as Flexible Spending Account) offered by many companies can save families as much as $2,300 per year — which offsets most if not all of the employer’s tax cost.

Nor does it have to be time-consuming. There are firms like ours (Breedlove & Associates) that specialize in handling all the payroll and tax paperwork for busy families.

If none of that motivates you to pay legally, do it for your nanny. She’ll get all the benefits enjoyed by other professionals (social security, medicare, unemployment, disability/workers’ compensation, credit worthiness, earned income credit, etc.).

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