Posts Tagged ‘Payroll Tax Holiday’
Household Employer Notes for 2013
The new year is here. What does that mean for you and your nanny?
Here are the three most important things nanny employers need to know for 2013:
- The Payroll Tax Holiday Has Expired. The social security tax has reverted to its traditional 6.2% (it was temporarily reduced to 4.2% in 2011 and 2012 in an attempt to stimulate consumer spending). The change will decrease take-home pay for all U.S. workers. Your full-time nannies will see a change of about $10-$15 per week, depending on their income level.
- The FICA Reporting Threshold Did Not Change. The $1,800 threshold has been extended through 2013. Families who pay a worker less than that amount are absolved of the FICA reporting responsibilities under the “casual babysitting exemption.”
- The Federal Mileage Reimbursement Rate Has Increased. The rate for mileage reimbursement increased by one penny per mile. It’s now 56.5 cents for each mile an employee drives on the job.
Payroll Tax Holiday Alert
TLC for Kids strives to stay up to date on everything salary or tax related for in home care.
We recently received this update from 4nannytaxes and wanted to share it with you.
The Payroll Tax Holiday that was passed in December 2010 will most likely not be extended for 2013. Therefore, this means that a nanny’s paycheck will most likely be slightly smaller.
Kathy Webb, owner of 4nannytaxes explains:
“In Dec 2010 Congress passed a ‘temporary’ one year payroll tax holiday, reducing the worker’s contribution to Social Security by 2%. It was extended until Dec. 2012 and all indications are it will not be renewed.
So a nanny who is paid $500 a week will likely have $10 more deducted from her paycheck starting in January.”
We will keep you posted when a final ruling comes from Congress.
Thank you RegardingNannies.com for sharing this with us!
TLC For Kids, Inc has been St. Louis’ premier nanny and babysitting agency for over 25 years. TLC For Kids’ dedicated staff is ready to assist you in finding nannies, tutors, newborn care specialists, sitters and more. Reach us at info@tlcforkids.com or 314-725-5660.