Everything You Need to Know

We know the stress and uncertainty created by complicated tax and labor laws.
The information here will clear up the confusion.

Expert Advice

Special Tax Advantages for Short-Term, Part-Time and NannyShare Employers

Families who hire on a short-term (i.e. summer nannies), part-time or shared basis have a unique tax advantage. Since employer taxes are tied to wages, these families typically have a much smaller tax obligation but still get to take full advantage of the tax breaks. Here's an example:

The Smiths hire a summer nanny and pay her $500 per week for 13 weeks ($6,500 total).  The Smiths have access to a flexible spending account at work, which allows them to pay for up to $5,000 of childcare-related expenses using pre-tax dollars. This saves them $2,300.  Meanwhile, the Smiths owe about $600 in employer taxes. The net savings for the Smiths is $1,700! 

As you can see, legal pay pays off – especially in short-term, part-time or NannyShare employment situations.

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