nanny tax

nan′ny tax`


n.
the portion of Social Security and Medicare taxes paid by the employer of a nanny, gardener, or other household worker.
[1990–95]
References in periodicals archive ?
com's pay and nanny tax calculators are a good place to start in determining budget, how much you can afford to spend on child care, and what options make the most sense for your family.
IRS computer systems are not set up just to check for the nanny tax," said Michael Rozbruch, a tax resolution specialist in Encino.
The IRS hiked the nanny tax wage threshold by $100, to $1,500 for 2006.
Families earning up to pounds 58,000 a year will be eligible for the nanny tax break.
The nanny tax is a common term referring to four potential tax obligations faced by homeowners who hire employees to perform domestic services: FICA, FUTA, income tax withholding and advance payments for the earned income credit.
GTM's brands include Tech Valley Payroll, GTM Household Employment Experts (The Original Nanny Tax & Payroll Company), GTM Employment Benefits, and A New England Nanny.
A taxpayer who paid a household employee more than $l,400 in cash wages in 2003 most likely owes the nanny tax.
In addition to the taxpayer's business and investment items, a number of items found on individual returns were included: the kiddie tax, the sale of a principal residence, the tax on excess individual retirement account contributions, rental income from a vacation home and the nanny tax.
Failure to report and pay payroll taxes under the new nanny tax rules is clearly a case of such noncompliance.
Nanny tax threshold rises for first time in three years
Whether you plan to be attorney general or not, if you have domestic help check out Nanny Tax Inc.
For a good discussion of what CPAs need to review with their clients, see "It's Time to Prepare for the Nanny Tax," JofA, Dec.