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 ?
There is no easy solution when confronting a nanny tax conundrum.
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.
Among 1995/96 legislative and regulatory developments covered are temporary regulations for automatic four-month extensions, earning limits increases for Social Security recipients, GAT-F changes affecting individual taxpayers, Nanny Tax reporting requirements, final regulations on, the definition of S corporations, and self-employed health insurance regulations.
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.
From an employment tax reporting standpoint, there are very few changes to the nanny tax for the 2014 tax year.
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.
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.