Doing the household chores can be exhausting, especially if you have commitments outside of your home.
Due to this, you may want to engage individuals such as a babysitter, maid, or caregiver who can do specific tasks or responsibilities around your house. If you pay the person directly and have the authority to direct the work they do, you are a household employer.
Hence, below is a rundown of everything you need to know about paying taxes as a household employer.
You may be obliged to pay household employment taxes, also known as “nanny taxes,” like how businesses compensate their employees when you hire a household employee. Furthermore, you are required to file federal and state taxes.
Federal employment taxes are reconciled with the household employer’s yearly Federal Income Tax return. Your state may demand quarterly unemployment tax filings, as well as reports and reimbursement of any state income taxes withheld.
Managing tax work such as filings and computations takes effort, and any missteps or mistakes might result in IRS fines.
Hiring a household employee payroll service would benefit you to create a hassle-free tax payment procedure. This process involves compiling the necessary documentation or paperwork, tracking their hours worked, calculating and paying wages, and filing payroll taxes.
Besides this, with a household payroll service, you simply enter the worked hours and pay rate online from anywhere and anytime. You can then see how much money will be deducted from your account on payday.
Hiring a household payroll Fort Myers service may be helpful since it allows you to handle payroll for your household employees in minutes, saving you a significant amount of time. It is also useful if you have a full schedule on most days but need to pay your employees adequately.
Learn more about household payroll
Entrust Payroll Solutions is an online payroll service with the primary purpose of providing excellent customer service and client care in order to best assist businesses in streamlining their payroll and HR procedures.
You can contact them at 239-208-8788 or go through their website www.entrustpayroll.com/ for more information about their payroll services and HR library resources.