Paying the nanny...

[lunarlady]

We are hiring a nanny for the first time, and I am slogging through all the requirements. I'm making progress, but it seems to me that everyone I know with a nanny uses a service to pay thir nanny with and do the withholding and taxes for them.

Am I crazy to think that i should be able to calculate, submit, and correctly manage my nanny's payroll on my own? I think it is just federal taxes, state taxes, social security, Medicare, and unemployment. And they are all held at a non changing % of gross pay, right?

Anybody else out there legally and correctly paying their nanny without using a service? I only see one software option, and it is windows only and we're Mac people, so I'm SOL there...

[SunRise]

Search for "household employees" to find information - the percentages , deductions etc. As an employer to this nanny you will withhold social security and medicare from her pay check and AND match the same amount from your own pocket - but this is explained in articles.

You should be able to do this on your own. The percentages may change each year (mostly tax withholdings; the ss and medicare do not change as often)

(I don't have a nanny, but I am a sole-proprietor and do payroll for my employees on my own / without a service)

[LittleGriff]

I absolutely do this all on my own, but then Excel is my second language. I did feel a little bit nervous about the prospect of under witholding (and sticking my nanny with a year end tax bill) or taking out too much and making her feel underpaid. But so far it seems to be ok and I think you'll have no trouble at all if you are inclined to do it yourself. You also should make sure, depending on employment situation, that you are witholding enough from your own paycheck to cover your half of the taxes.

Those services are expensive! Better to save the money I say.