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Thank you so much. I would recommend your company to absolutely everyone in need of help. You always asked questions to ensure proper performance.Cynthia Cisneros, Television News Personality
In a time crunch you provided me with two excellent applicants within hours!Dr. Anita Tonking
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
Objective and professional with an obvious personal touch, small but important comments about each person.Dr. Shari Rochen
We’ve placed ads in newspapers on two occasions and have gone through an Au Pair program twice. This has been our best experience by far!James Wilt, Houston Symphony
Originally, I tried to find a nanny on my own and it took me much, much longer and only half of them spoke English. I had to do my own background checks. Morningside Nannies made it much easier, faster and more efficient.Holly Weinstock, Stay at home mom
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
Morningside Nannies only sent me nannies that fit my needs. I felt that I wasn’t sent the resume of everyone on file.Jodie MacCrory, IBM
I have used two other agencies, both were difficult to work with and did not live up to their promises and Morningside Nannies did.Dr. Susan Streusand
The first person you recommended met my needs perfectly.Carolyn Goodrich, Stay at home mom

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