Nanny Taxes: Are You Breaking the Law?

nanny taxes

It’s tax time – and the perfect time of year to remind our families that the IRS considers even part-time nannies and sitters to be household employees, never independent contractors. 

So if your family has engaged the services of a nanny or local babysitter and has paid that individual $2200 or more per year (as of 2020), then you are legally obligated to provide the nanny or sitter with a W2 at the end of the year and contribute to the caregivers’ social security, medicare and unemployment taxes by paying your fair share of employers’ taxes. 

Nannies are also entitled to be paid at least minimum wage for every hour worked and should receive overtime pay– time and a half for all hours in a work week over 40. In the state of Arizona, like all workers, nannies and sitters are also earn paid sick leave. 

Overwhelmed with hiring a nanny or sitter?

Finding a safe, qualified  and reliable sitter is only half of the battle. Many families also don’t want to worry about all the legal and financial responsibilities of household employment such as securing an EIN, knowing how to properly withhold employee taxes and pay for the employers’ portion, how to prepare a W2, etc. Plus, parents are busy and have little time to manage or schedule the nanny or sitter they have hired. 

We take care of everything.

That’s why families are turning to our sitter servicea unique model of agency employed, fully-screened nannies and sitters that are ready and able to work 24/7, 365 days a year – even at a moment’s notice! 

Even if you are using a nanny finder site, sitter app or other local agency, they might not be employing the nanny or sitter and simply referring the candidate to you for hire, in which case, you are still responsible for household employment taxes even when paying a nanny you’ve found through a service

But we are different. We employ our entire team of nannies and sitters so you don’t have to. We hire, pay, train and manage our team so all you have to do is schedule care when you need it and we take care of the rest. Your card will be automatically charged for services each week so you don’t have to worry about paying the nanny or sitter. We accept all major credit cards so parents love that they can earn frequent flyer miles while getting some extra help with the kids at home. 

We also offer Placement Services for families wishing to hire a full-time, long-term nanny and will guide you through the employment process. 

Your sitter search stops here.

In terms of quality, we can’t be beat. We have one of the most rigorous screening processes in the industry and hire only the best. So stop unsafe online searches or dealing with the stress of finding a great sitter you can count on. We are just a phone call away! 

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