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I described the person I wanted and that’s what you found for me. Thank you.Penny Featherston, NorAm Energy
During our search for our current nanny I used several well-known services in Houston. I found that Morningside Nannies had the highest- quality applicants in town.Dr. Katherine Tiwari
I had an emergency situation and had a nanny sent over for the following day. I am so pleased with the service provided by Morningside Nannies. My son immediately fell in love with the nanny assigned to us. We couldn’t be happier.A. Porter
Compared to other agencies Morningside presented a higher caliber of candidate.Phyllis Epps, Law Professor
The quality of candidates was very good. It was a difficult decision but Amy has proven to be a wonderful choice. We could not have found a better person. I would recommend your services to anyone looking for a nanny.Sonia Breathwit, Business Owner
Quality of applicants was way above what we had hoped for. Thoroughly enjoyed working with your agency – we will highly recommend you to friends.Kim McMillan
I am delighted with the outcome, and enjoyed the process.Dr. Rick Smalley, Professor Rice University, Nobel Peace Prize Honoree
Morningside was by far the best as compared to the other services we used!Dr. Michael O'Reilly and Dr. Valerae Lewis
The first person you recommended met my needs perfectly.Carolyn Goodrich, Stay at home mom
Morningside Nannies was outstanding. The process was stress free and the caliber of applicants was far superior to that of other agencies. Morningside Nannies was thorough in their review and timely presentation of candidates.Susan Sherman, CPA

What You Need to Know About Nanny Taxes

Any employer who expects to pay more than the annual wage threshold, $1800 for 2012, to a single employee has legal tax obligations. The employee may be a part-time sitter or a full-time nanny. All employers of all domestic workers are subject to the same regulation.

Nanny employers can expect their employer tax obligations to be equivalent to approximately 10% of the nanny’s gross annual salary.

FICA

Nanny employers are responsible for withholding and paying Social Security and Medicare taxes (FICA). The employer share of this tax is 7.65% of the employee’s gross wages. The employee’s share of FICA is another 7.65%. You may choose to pay this yourself and not withhold it however submitting payment is the employer’s responsibility.

FUTA

Nanny employers are responsible for paying the Federal Unemployment Tax Assessment which is based on the nanny’s earnings. This tax caps at less than $45 per year.

SUTA

Nanny employers are also responsible for state unemployment tax assessments. The tax amounts will vary state to state.

Additional State Taxes

Depending on the state, both nanny employers and nannies may have additional tax responsibilities.

Income Taxes

Nannies are responsible for federal and state income taxes. While employers are not required to withhold and submit the nanny’s federal and state income taxes, doing so is industry best practice and can prevent the nanny from incurring large tax bills or payment penalty fees.

There are significant tax incentives for paying your nanny legally. In fact in many cases, the tax savings might actually exceed the employer’s hare of the taxes. Employers who have access to a dependent care or flexible spending account can save several thousands of dollars per year. Even those who don’t have access to such accounts can take advantage of tax credits for child or dependent care, saving parents $600 to $1200 per year, depending on the number of dependents requiring care.

IRS publication 926, “Household Employer’s Tax Guide,” available at www.irs.gov, provides an in-depth review of household employer tax responsibilities.

For paperwork relief, many parents hire a payroll and tax service. The following industry leaders provide free consultations to clients of Morningside Nannies:


Morningside Nannies 3701 Kirby Drive, Suite 1228
Houston, TX 77098
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Office Hours:
Monday - Friday
8:30am - 5:00pm

(713) 526-3989
Fax: (713) 526-1463
info@morningsidenannies.com