It's Almost Summer! Do You Know Who Your Nanny Is?
It's Almost Summer! Do You Know Who Your Nanny Is?
SurePayroll Offers 10 Tips for Parents Hiring and Paying a Summer Nanny
GLENVIEW, Ill.--(BUSINESS WIRE)-- School's out for summer! It's like music to the ears of children everywhere, who are eager to shed the daily grind of school for the freedom of the lazy and hazy days of summer. For working parents, however, these summer days aren't as carefree. While parents will likely enjoy some family summer fun, they still need to find care for their children during the summer months. Some parents send their children to camp, although many others opt for an individual caregiver like a nanny or babysitter, which can be convenient, but the process of getting started can overwhelm busy parents.
When choosing a nanny or babysitter this summer, there are several key factors to consider. Safety and convenience are of course top priorities. But unbeknownst to many parents are the legal and payroll considerations to be aware of and keep in mind to ensure they are legally compliant.
"When you hire a seasonal nanny or other household employee, it's a bit like starting an in-home business. There's a lot to keep up with, from IRS rules and regulations to administrative tasks like payroll. This can increase the workload for already energy-deprived parents and add extra stress when they really just want to focus on their kid's well-being," said SurePayroll CEO and President Michael Alter. "Fortunately for parents, there are online services that relieve much of the burden - from finding the right nanny to managing the pay and taxes for them."
Once parents have found a reliable nanny they trust and have followed the proper procedures to ensure compliance, the summer will be a breeze as they enjoy peace of mind that their children are in good hands and can enjoy all that the days of summer have to offer.
SurePayroll offers these 10 tips for hiring and paying a summer nanny:
- Consult with family members, friends, teachers and colleagues to get personal recommendations for responsible nanny candidates, including high school or college students on summer break.
- Work with a reputable selection service like SitterCity to identify and screen appropriate candidates. Be sure to utilize background checks, check several references and conduct personal interviews before making a decision.
- Contact the U.S. Citizenship and Immigration Services to verify that your summer nanny is legally eligible to work before you hire.
- After you select your nanny, file an application for a Federal and State Employer Identification Number for tax purposes.
- Agree to wages in advance and determine wages based on experience and competitive rates in your area. Nannies must be paid at least minimum wage for each hour worked and may be entitled to overtime.
- If you pay a seasonal nanny more than $1,000 per quarter or $1,800 per year, you are to pay the "Nanny Tax" (which includes Social Security, Medicare and the Federal Unemployment Tax).
- Pay the nanny either with direct deposit or by check - there's no additional fee for either.
- Payroll needs to be set up and provisions made to pay Social Security, Medicare, FUTA and other payroll taxes. Keep track of tax deductions, medical benefits and other insurance. Mistakes can be costly: failure to pay the IRS nanny tax can result in back taxes, penalties, interest and fines up to $25,000.
- Complete all Nanny Tax paperwork including a 1040-ES four times a year and a signature-ready Schedule H with your annual 1040. Provide a W-2 for the nanny at the end of the year.
- Set up a payroll system and pay your nanny according to federal and state labor laws. Consider working with an online payroll provider like SurePayroll to manage the pay, tax and filing to ensure compliance.
An easy online payroll service, SurePayroll makes it easy for busy parents to manage the pay and taxes for a nanny with the ability to issue a check online or from just about anywhere using a mobile phone.
For more information: www.SurePayroll.com. Be sure to join us socially:
- Google+:SurePayroll Inc.
- Like us on Facebook:SurePayroll
- Follow us on Twitter@SurePayroll
- Connect on LinkedIn:SurePayroll Inc.
SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. Whether a business has 1, 10, or 100 employees, SurePayroll delivers peace of mind by combining innovative, industry-leading technology and personalized support from an award-winning, U.S.-based customer care team. SurePayroll also provides private-label and co-branded services for accountants and banking partners as well as offering efficient online solutions for managing 401(k) plans, health insurance, workers' compensation, employee screening and more. SurePayroll is a wholly owned subsidiary of Paychex. For more information, please visit www.SurePayroll.com. Follow us on Twitter - Circle us on Google+ - Connect with us on LinkedIn - Like us on Facebook.
Paychex, Inc. (NAS: PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex®. Human resource services include 401(k) plan recordkeeping, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. A variety of business insurance products, including group health and workers' compensation, are made available through Paychex Insurance Agency, Inc. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 567,000 payroll clients as of May 31, 2012. For more information about Paychex and our products, visit www.paychex.com.
KEYWORDS: United States North America Illinois
The article It's Almost Summer! Do You Know Who Your Nanny Is? originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.