[Parentsgroup-list] Fw: Nannhy/Household Tax Information

Leslie Pierson lpierson at hbs.edu
Thu Nov 15 10:49:23 EST 2007


Another service that I found helpful is www.gtmassociates.com
<http://www.gtmassociates.com/> .  They also have a free nanny tax
calculator and links to all of the necessary forms.

 

  _____  

From: parentsgroup-list-bounces at lists.hcs.harvard.edu
[mailto:parentsgroup-list-bounces at lists.hcs.harvard.edu] On Behalf Of Paula
Broadwell
Sent: Wednesday, November 14, 2007 10:29 AM
To: Parentsgroup-list at lists.hcs.harvard.edu
Subject: [Parentsgroup-list] Fw: Nannhy/Household Tax Information

 

Hi everyone,

 

We gave up trying to figure out the nanny tax ourselves and enlisted the
help of an accountant. Here is some of the "free" info she sent me, attached
and below: 
 

 

 

----- Forwarded Message ----
To: paulabroadwell at yahoo.com
Sent: Tuesday, September 11, 2007 1:19:21 PM
Subject: Household Tax Information

Hi Paula -

 

As we had discussed I have attached a guide to household employment.  I
attached two guides - one from the IRS and the other from Commonwealth of MA
.

 

Here is a quick summary of the filing requirements for a household employee:

 

1.)     You will need to apply for a federal EIN number.  This can be done
online through IRS website and is usually issued right away.

2.)     When you file your 2007 Individual Income Tax Return we will include
a Schedule H which will reflect all the federal withholding (Social
Security/Medicare, Federal Unemployment and Federal Income tax withholding).
Due 4/15/08.  As an employer you are required to pay 7.65% for social
security and Medicare.  The employee is required to pay 7.65%.  Example:
Gross wages = $100. $7.65 must be withheld and a net check of $92.35 issued
to the employee. 

3.)     You will need to register with Mass Division of Unemployment
Assistance (DUA).  This can be done online and you will need the federal EIN
number.  Quarterly returns will need to be filed with DUA.

4.)     You can register online with Mass DOR for the state withholding.
Form M-941 is due each quarter to submit any MA withholding.

5.)     Lastly, a form W-2 will need to be issued to your employee at the
end of the year.  You will need current address and social security number.

 

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