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Filling Out Tax Form

The No-work, No-worry Solution to Paydays, Tax Time and All Points in Between

We’ve taken the work and worry out of the household employment obligations by partnering with GTM Payroll and HR.

 

We know families today have a lot going on and the thought of figuring out nanny taxes can be stressful and confusing to parents. Many families decide to pay their nanny “under the table” in order to save themselves the trouble of figuring it out and to avoid the hassle of paperwork. While this does save time and effort, it is illegal and not fair to your nanny. The good news is that nanny taxes don’t have to be an overwhelming prospect!

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DO YOU NEED TO PAY EMPLOYMENT TAXES?
If you will pay cash wages of $2,700 or more in 2024 to a household employee, you must withhold and pay Social Security and Medicare taxes (Your share is 7.65% of cash wages).

CAN I FILE NANNY TAXES ON MY OWN?
The short answer is Yes. However, over time we have seen the stress and frustration that can occur when families do this on their own.  We recommend to all of our families that they at least look into a payroll service. The IRS estimates that it can take a household employer 60 hours each year to comply with all federal and state tax laws. It is often complicated and time-consuming.

WHAT ARE THE RISKS OF NON-COMPLIANCE?

Not paying payroll taxes could result in large fines and penalties, and possible legal action by your employee. It's not difficult to get caught. If your nanny files for unemployment, gets hurt on the job, or sues you for not paying minimum wage or overtime, this could trigger an IRS audit.  

WHAT IS THE BEST WAY TO HANDLE ALL THESE DETAILS?
As a Big Sky Nanny Family, we’ve arranged for you to receive a personal introduction to the team at GTM. We will introduce you to our contacts there and let them show you how they can help make your life easier! There is no pressure to use this service. We just think they are great at what they do and are happy to help our families utilize such their services! 


 

OTHER OPTIONS:
We like to make sure families have choices! If GTM isn't the right fit for you we also offer HomePay. HomePay has been in the nanny payroll business for many years.  They offer a great selection of products and we have had many families happy with their services!



MONTANA HOUSEHOLD EMPLOYMENT TAX AND LABOR LAW GUIDE
Here is a fantastic detailed checklist for Montana families!


 

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