Old Fashioned Family offers nanny payroll services to ensure families comply with Federal, State and Local tax laws.  Refer to Old Fashioned Payroll for more details.

Paying taxes for domestic employees may not be straight forward, but neither is it terribly complicated. What makes it not-so-straightforward is the fact there are separate requirements for the IRS, NY State Department of Taxation, and the NY Department of Labor. There are two separate concepts of which you should be aware: paying taxes and withholding your nanny's taxes. Generally, the former is required and the latter is optional. However, we strongly recommend that you offer to do the withholding for your nanny. It is unreasonable for domestic employers to expect their nannies to calculate weekly federal and state tax withholdings and submit the associated forms to the IRS and the NY State Tax Department. Imagine if your own employer did not withhold your taxes.

For the exact rules determining whether you are required to pay taxes, withhold wages, and/or report wages, refer to IRS Publication 926 (Household Employer's Tax Guide), New York State Department of Taxation and Finance Publication 27 (What You Need to Know if You Hire Domestic Help - For Tax Year 2006), and NY State Department of Labor Publication IA 318.D (Householder's Guide for Unemployment Insurance). Please note that many tax related filings or registrations must be completed on or shortly after the first day of your nanny's employment. We strongly encourage people to review the federal and state publications listed above OR hire a payroll service provider before hiring a nanny. Refer to Old Fashion Family Payroll for more information.