The Scoop on Hiring a Nanny & What That Means For Taxes | Poppins Payroll
Have you ever thought about having an in-home nanny or housekeeper? Sounds like a dream, right? There is so much value to having someone come into your home to work for you – whether it is as a nanny, babysitter, or even a health aide or nurse. The thing is that if you pay a household employee such as a nanny, babysitter, elder caregiver or house manager more than $2,100 a year to perform work in your home (or occasionally even out of your home such as in a nanny share), the IRS says you are a household employer.
As a household employer, you must comply with certain tax obligations, commonly referred to as the “nanny taxes” or “household payroll taxes.” It’s complicated, but generally, after you have registered as an employer with all the appropriate agencies and reported your new hires, you must:
- Payroll – At every pay period, withhold certain federal taxes such as income tax, Social Security, and Medicare, and you must also calculate employer contributions such as unemployment taxes related to those wages.
- Quarterly – submit the proper paperwork and payments to the correct agencies. The agencies will typically include the IRS, the State and any other local agencies that require remittances, including certain municipalities.
- Year-End – provide your employee with his or her W-2 form, submit a copy of the W- 2 and W-3 to the Social Security Administration, submit state reconciliations if required and prepare a Schedule H to file with your individual tax returns.
The services provided by Poppins Payroll are a great option for those who don’t have the time to deal with in-home employee payroll and tax (and who does??). The services features include:
- Experts – Poppins Payroll only does payroll and bookkeeping for household employees so they are experts in the area. Most standard payroll services aren’t as familiar with the unique aspects of household employer taxes and how they differ from small business taxes. To boot Poppins Payroll is professional, courteous and knowledgeable.
- Affordable – It is less than half the price of other services. Compare others at $800 to $1100 a year to just $429 for the first year of Poppins Payroll. Unlike the other services, Poppins Payroll does not have any hidden fees—just $39 a month for everything—set-up, direct deposit, quarterly and annual forms. And, the first month is free.
- Easy Signup – It is simple to sign-up with Poppins Payroll: You just enter your basic information, and Poppins Payroll does the rest. Poppins Payroll gets your tax ids, sets up your state, federal and local accounts, calculates all the withholdings for you and keeps track of your bookkeeping paperlessly.
- Easy To Use – You can control and revise payroll, direct deposit, add and remove employees and store all of your tax and payroll history in the straightforward and secure employer portal. See? Simple.
Let’s face it, taxes can be, well, taxing. And with an option like Poppins Payroll, bringing in that extra help is a no-brainer.
Poppins Payroll is different.
- Affordable – It is less than half the price of other services out there (compare others at $1100 to just $429 for the first year of Poppins)
- Simple – It has a simple pay structure of $39 that includes EVERYTHING. The goal of Poppins Payroll is to make this simple, not more confusing. In fact, they get calls frequently with users wanting to verify that $39 includes everything – YES! It does. Even direct deposit is free with Poppins Payroll.
- Easy-to-use – Not only do you get tax experts that make sure you stay 100% in compliance with the complicated tax laws, but Poppins uses an intuitive, and super adorable, user interface so that everything is done online – no more forms every payday!
- Awesome – Right now they are offering the first month for FREE.
OK, so you may be thinking this service is simply too good to be true. We think it is an honest, streamlined solution to a niche that moms (and dads) are needing. As we were learning more about the services they provide, this page of Frequently Asked Questions helped a lot in understanding the entire process.
If you are looking for a simple solution to an otherwise complex process, look no further! We hope Poppins Payroll will make life easier for parents with their turn key service.