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TLC Family Care
  • services
    • Find a Sitter
    • Hire a Nanny
    • Newborn Care Services and Baby Nurses
    • Sitters available for Hotels and Visitors
    • Employer Sponsored Backup Care
    • Childcare & Group Care Staffing Services
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  • meet us
    • Meet Our Office Team
    • Meet Our Caregivers
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Posts Tagged ‘Dependent care account’

When do I need to start paying my nanny's taxes?

By TLC Nannies & Sitters | August 25, 2010 | 0

TLC for Kids Owner, Stephanie Graff weighs in and answers your questions.

If you are planning to hire a nanny to work in your home and you will be paying her more than $1,700 in a calendar year, you will be required to withhold and pay taxes. These taxes will vary depending on your nanny’s marital status, household income, dependents she is claiming, and the salary you will be paying her. By paying your nanny “on the books” instead of “under the table,” both you and your nanny may take advantage of many benefits and may actually save money in the long run.
As an employer, you are required to pay taxes that usually amount to 10% of your nanny’s gross pay. These taxes include half of the Social Security and Medicare tax (7.65%) and Federal and State Unemployment Taxes.
Employee taxes usually range between 15-20% of the nanny’s gross wages. These taxes are made up of the other half of the Social Security and Medicare tax as well as Federal and State Income Tax. The employer is required to withhold and pay the Social Security and Medicare taxes. The nanny and her employer will decide together whether the employer will withhold the income taxes or the nanny will pay it herself at the end of the year. Most nannies opt for it to be withheld so that they do not have to budget for a payment with their annual federal and state tax returns.
Both nannies and employers may enjoy benefits from following the tax laws. First of all, if you do not, you are breaking the law and therefore don’t have to worry about the large fines and possible tax evasion penalties (Note: the IRS announced in April 2006 that they are beefing up enforcement of employment taxes). Maybe a greater incentive is the financial one. A family paying their nanny legally may take advantage of tax breaks through a Dependent Care Account provided by their employer or through the Tax Credit for Child or Dependent Care. Most companies allow employees to contribute up to $5000 of their pre-taxed earnings to an individual Dependent Care Account. This money is taken out of the employee’s check and reimbursed when a receipt is turned in from the childcare provider. Families can save thousands of dollars a year through a Dependent Care Account. Those who do not have access to a Dependent Care Account may claim the Tax Credit for Child or Dependant Care on their income tax return. A tax credit of 20% to 30% of qualifying childcare expenses may be taken up to $3,000 for one dependent and up to $6,000 for two or more dependents per year.
In your quest for the perfect nanny, you may run into nannies who have been paid in cash in the past and do not realize the benefits of being paid legally. Being legal creates several important benefits:
1. An employment history needed for a car loan, mortgage, student loan, credit card application, future job applications, etc.
2. Upon retirement, legally – paid nannies will receive social security and medicare benefits
3. Unemployment benefits. If you have to lay off your nanny, she may receive up to 50% of her salary for up to six months depending on the circumstances.
4. A single nanny with a child under 19 years old may qualify for the Earned Income Credit, allowing her to eliminate as much as $3,500 of her federal taxes.
As a new employer, tax tables and federal and state tax forms may seem a little intimidating. Luckily, there are tax services specializing in household employment. Breedlove & Associates provides comprehensive payroll and tax services exclusively for household employers. They are the largest and most reputable firm in this industry. Since 1992, they have eliminated paperwork, reduced risk, maximized tax breaks — and generally made life easier — for more than 10,000 families. They charge a flat quarterly fee, ranging from $120 to $180 depending on how automated you want everything to be. There are no long-term commitments and their work is fully guaranteed. Finally, as part of their service, they provide unlimited access to tax and labor law experts so you can always get prompt, professional support and guidance on all aspects of household employment.
With all of the benefits employers and nannies get by being legal, paying illegally doesn’t make much sense. It’s a lot of risk for little reward.

Provided by Stephanie Graff-Yaffee

Posted in Hiring A Nanny and tagged Dependent care account, employee, employer, FSA, nannies, taxes, TLC for Kids
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Meet some of our Newborn Care Specialists

St. Louis Night Nannies, Newborn Care Specialists, and Postpartum Doulas.

Sherri S:  Sherri has been a newborn care provider with TLC for Kids since 2013 and quickly became one of our most requested newborn care specialist in the St. Louis area. Sherri has completed the Certified Newborn Care Specialist course and is Certified in CPR and First Aid. Sherri is also trained and has experience working with multiples.  One of Sherri’s references said this about her “Sherri has the perfect personality to work as a newborn nanny, she is courteous, cheerful, and compassionate. Sherri was very friendly, easy to talk to and was a blessing to our family”. 

Kim D:  Kim has been providing families Newborn Care with TLC since 2009. Her vast experience and calm soothing personality give families support, knowledge and rest. She is also Certified in CPR and First Aid and has experience working with multiples. Kim has worked with several families in the St. Louis area providing newborn care. One of Kim’s references said this about her: “Kim interacts wonderful with the girls and has a talent working with babies, especially twins. Kim has been a huge help for my family.  She is great and anticipating needs and works very hard”

Michelle D:  Michelle has been with TLC for Kids since 2013 and has become a coveted newborn care provider for our TLC families looking for overnight.  Michelle 16 years of experience in nurturing children. She has formerly owned and operated a daycare center in for children ages 2-5. Michelle has already worked and made a huge impact on several families in St. Louis providing newborn care. One of Michelle’s references said this about her: “Michelle's interaction with my baby was excellent. She was kind, warm. and jovial. I would absolutely recommend Michelle as a newborn nanny.

Lisa S:  Lisa became certified as a newborn care specialist in August of 2017, since then she has been an intricate part of our newborn care team and is one of our most requested night nurses. Lisa has experience working with premies and multiples and has been described as the baby whisperer.  Lisa has a calm professional manner that parents trust. Lisa loves to take care of newborns while the parents get the rest and downtime that they need and meeting the needs of the baby.  She enjoys meeting great families and building bonds with each one of the families for life.

Miami-Dade  Night Nannies, Newborn Care Specialists, and Postpartum Doulas.

Mary-Ann: Mary-Ann has been a newborn care specialist in Miami for the past 7 years. She educates new parents on all aspects of newborn care, from breastfeeding to swaddling. Mary-Ann knows how overwhelming it can feel to have a new baby in the home. She is soothing and she’s always looking for ways to support postpartum mothers both emotionally and physically. Our agency loves her, and our clients love her! She is calm and amazingly adaptable to all situations. Mary-Ann has also been a nanny and adult companion for many families. One of her references even refers to her as an Angel!”

Rosy: Rosy is offering over 20 years of childcare experience and proficiency in assimilating into a new family culture. She has worked as a nanny and overnight newborn caregiver. Rosy began working with children when she was in school and began to pursue a degree in Child Psychology. She then decided that she wanted to dedicate herself full-time to providing private child care and newborn care, which she has been doing ever since. She has extensive experience providing care for babies as young as 1 week old as well as providing support

Midtown, Brickell, Miami Beach Night Nannies, Newborn Care Specialists, and Postpartum Doulas.

Amber C: Amber is a Certified Birth and Postpartum Doula as well as a mother of 2. She is committed to educating parents and helping them with the transition into parenthood. She is a strong advocate of parent-infant bonding and will support mothers in breastfeeding.

Gloria B: Gloria’s calling is working with babies and their parents. Gloria has over 15 years of expertise as an Infant Care Specialist. She has extensive experience caring for infants and toddlers, including multiples and preemies. She also has experience in sleep coaching, lactation education, and is fluent in English, Spanish, and American sign Language. Maria: Maria is one of our most requested night nannies on Miami Beach. While she loves working with children of all ages, she has a special place in her heart for assisting families with their new babies. It is her goal to give parents the help they need so that they can rest and recover. She is bilingual speaking both English and Spanish. She also has experience working with multiples.

TLC Family Care

We are thrilled to announce our participation in the “One to One” childcare campaign. One to One is a collaborative effort of 6 of the top nanny agencies located in major metropolitan areas to provide relief to essential workers during this COVID-19 pandemic. If you are an essential worker and are in need of child care, talk to your HR benefits representative today about One to One and let them know TLC Family Care can help.

TLC provides child care coverage for companies in the Miami, Orlando, Tampa, Jacksonville, Charlotte, Atlanta, St. Louis and Chicago Metropolitan Areas, while other participating agencies provide coverage in Dallas, Los Angeles, New York, Philadelphia, Phoenix, San Diego, San Francisco, Seattle, Baltimore and Washington DC. Together we cover a lot of ground and bring together an impressive team of industry veterans possessing more than 120 years of combined child care staffing experience.   To learn more now and get started visit our Backup care Page.

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