It is all too easy to fumble taxes when paying a nanny or other household worker. But, as the Wall Street Journal reported, the Internal Revenue Service is making it easier for people who may have mishandled such issues to make things right.
The new tax amnesty program targets employers who improperly classified employees as independent contractors, allowing them to voluntarily agree to begin treating these workers as employees going forward, while virtually eliminating any liability for past unpaid taxes. TLC for Kids relies on Breedlove and Associates, a national nanny payroll company for their expertise and according to this agency, any nanny is considered a household employee if they are paid $1800 or more per calendar year (for 2012 and 2013).
TLC For Kids strongly encourages all household employers to claim their nanny as an employee while filing taxes if they have met the monetary threshold and the nanny should be legally considered an employee of the household.
If you would like to take advantage of the IRS Tax Amnesty or have any questions on the Nanny Tax you can contact Breedlove and Associates at 888-273-3356 or by visiting Breedlove online.