Monday, March 02, 2009

Understanding The Nanny Tax....

If you hire an independent housecleaner, then you are subject to what's called a "nanny tax". The tax can be best described in this manner.

Look at your next pay stub from your own employer. The difference between your gross income and your "take home" pay is collectively called your payroll tax. Those payroll taxes pay for such things as social security and unemployment insurance. Everyone has to pay them - not just you.

When you hire an independent housecleaner, those taxes still have to be paid - and since you are now the employer - that responsibility lies with you. The government requires you to report your housecleaner's income and it also requires you to pay the corresponding taxes.

Here's a great article that sums up the nanny tax.

Of course, you don't have to pay the nanny tax if you hire a professional cleaning service such as Two Maids & A Mop. Just one more reason to hire us!!!

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