WHAT ARE MY NANNY TAX RESPONSIBILITIES

If you are required to report and pay employment taxes, you will need an employer-identification number, or EIN. An EIN is a nine-digit number issued by the IRS. EINs follow the following format: 00-0000000. You apply for an EIN by completing Form SS-4 and mailing it to the IRS. A copy of Form SS-4 is included with the NannyPay software package.

In the new year, you must also provide to your household employee a Form W-2, which reflects wages paid to your nanny and taxes withheld during the previous year. You must send the completed Form W-2 to both your nanny and the Social Security Administration (SSA). Generally, these forms must be filed (sent) to your nanny by January 31 of the following year and to the SSA no later than February 28 of that following year.

Make sure you keep and retain accurate records in case the tax man cometh!

EIN stands for "Employer Identification Number". The IRS uses an EIN to keep track of the taxes you owe and pay as an employer, much like it uses your Social Security number to keep track of your individual (personal) taxes. If you do not have an EIN, get IRS Form SS-4, Application for Employer Identification Number.

You may enter "Applied For" in the NannyPay software Set Up Screen if you don't have an EIN number by the time you start using NannyPay. See Setting Up NannyPay Software for more information.

Form SS-4 is the Application for Employer Identification Number, or EIN. You need an EIN to report and remit employment taxes for your household employee and to give tax statements to your household employee. You must use your EIN on all items you send to the Internal Revenue Service (IRS) or the Social Security Administration (SSA).

Fill out and mail Form SS-4 to the IRS to obtain an EIN. If you do not have your own EIN by the time a return is due, write "Applied for" and the date you submitted Form SS-4 in the space shown for the number.

A W-2 form is used by employers to report to your household employee and the government the amount of cash wages paid to your household employee and deductions withheld. You must file Form W-2 for each household employee to whom you paid this year $1,800 or more of cash wages that are subject to Social Security and Medicare taxes. To find out if the wages are subject to these taxes, you should read the instructions for Schedule H. If the wages are not subject to these taxes but you withheld Federal income tax from the wages of any household employee, you must still file a Form W-2 for that employee.