Nanny Tax Information

      Nanny Tax Resource Center

      GTM Associates provides a free Nanny Tax Resource Center. This resource center includes a free:

1. -payroll tax calculator
2. -tax forms
3. -employer information,
4. -frequently asked questions.

      GTM provides clients and nannies free brochures and free tax consultations to help understand the tax laws.

      Taxes

      The nanny’s salary is legally taxable. The nanny may elect to have the family withhold income taxes on the salary or the nanny may choose to be responsible for paying their own estimated income taxes quarterly.

      In addition to withholding the income taxes when the nanny so elects, the family is responsible for paying the payroll taxes on the nanny’s salary. The following are payroll taxes:

1. --FUTA (Federal unemployment tax)
2. --SUTA (State unemployment tax)
3. --One half of FICA (Social Security and Medicare tax)
4. --Workmen’s Compensation is legally required and can be purchased from an insurance company