All Families employing a full time nanny need to contact both their local IRS office and their State Department of Revenue office.
When contacting the IRS, you need to request the following:
- An application for an Employer Identification Number – Form SS4
- A W4 form – To be given to your Nanny to be filled out and returned to you for your files
- An I-9 form – This is a form from the Immigration Department that verifies US Citizenship – To be filled out by your Nanny and returned to you for your files.
Once you have received and filled out your SS4 form, you need to call the regional 800 telephone number provided on the form. Depending on your region, you will be advised to either:
Mail your SS4 form to the regional office and they in turn will mail your Employer ID # to you. This will take about six to eight weeks.
You will be asked to provide the information contained in the SS4 form over the telephone, at which time you will be assigned your Employer ID # immediately.
When you have been assigned an Employer ID #, you will automatically receive (on a quarterly basis) the appropriate form to be filled out and returned to the IRS. This form will be sent along with a check that covers your employee’s federal withholding tax, withheld social security, and your social security match. Social Security for employee is 5.76% and family match is 7.65%.
How we help with full time nanny taxes
We can only advise you to contact your State Department of Revenue and specifically request assistance, because each state varies so greatly regarding state tax withholdings. Many states have different guidelines for “domestic help”, so be sure to clarify that your employee will be working in your home providing childcare.
Like the IRS, once you are set up, the appropriate state forms will be sent to you on a quarterly basis. These forms will need to be filled out and returned to the State Department of Revenue along with a check covering the taxes for your state.
Federal Unemployment Tax
Federal Unemployment Tax is sent to the state. Your state will advise you as to how that amount is calculated and provide you with the necessary forms. Oregon residents – Families hiring a Nanny for the first time will be considered a new business, and the unemployment tax may be as high as 3.2%. This figure may vary from year to year. If no claims are filed at the end of the year, this figure may be reduced to as low as 1.6%.
Workers Compensation also varies from state to state. Your State Department of Revenue will advise you on your state requirements. When calculating federal and state withholding taxes, there are charts available through the IRS and your State Department of Revenue, which tell you exactly how much to withhold based on salary, marital status, number of dependents, and how often your employee is paid each month.
If you are having difficulty reaching the government agencies, your accountant should also be able to advise you about the specific taxes in your state.
We hope you have found this information helpful. Do not hesitate to call Northwest Nannies Childcare Services if you are still in need of assistance.
Call or email us today for an application.