Nanny Tax Laws
Did you know that legally your nanny is entitled to a W-2 and NOT a 1099?
Oftentimes parents make the mistake of classifying their nanny as an independent contractor when nannies are, under no circumstances, independent contractors. Sadly, many parents usually make this error at the guidance of their CPA, because many CPAs do not know the law as it specifically pertains to household employees. A simple google search will prove that nannies are NEVER to be issued a 1099, despite what your CPA tells you. Misclassifying your nanny can result in audits from the IRS and hefty fines, so it's not worth the risk. Take a look at the following articles for more information...