Nanny tax question

[fashionx]

I'm getting a little ahead of myself because I haven't yet hired a sitter. But I put an ad on Care . com and plan on interviewing a couple people next week. However from the profiles and from the site itself, it seems that paying nannies and paying taxes is the norm. I'm new to this all, but plan to have a nanny 2 days a week initally and am therefore above the threshold for taxes legally speaking too.

If you have a nanny/sitter and pay payroll taxes, do you have a payroll service such as the one they offer on the site, or another service such as Intuit? Or do you keep track and file it all yourself? If you do it yourself is it relatively easy?

I do our income taxes and have my own business so I'm not opposed to doing it myself if it's not a lot of extra work, but also want to make sure I don't screw it up since it's someone else's pay involved.

ETA: My business doesn't have employees so I haven't done this before. I do subcontract work sometimes and am familiar with 1099 work, but I guess nannies do not quality for that.

Also, does anyone know if I need to get a separate "personal" EIN for nanny payroll or if I can just use my business (I have a sole proprietor business)?

[monsterz]

I use a local service that came highly recommended. Care also offers a payroll service through their site called HomePay.

[drloretta]

I used a payroll service through sittercity

[pacificrules]

We've just started this process and have found it easy to keep track ourselves. (It seemed like the fees associated with the payroll companies seemed too expensive to be worth it.) I would assume you'd need a different EIN since you're paying a household employee, not an employee for the sole proprietorship you already have. I found this link super helpful: pixeltheoryinc.com/nanny-tax-how-to.html

[BirdGirl]

Nov 11, 2015 23:06:49 GMT -5 @kirkette said:

We used intuit. It was easy.
I think BirdGirl gave us the rec. 

Yep! We've used it for 4 years.