Benefits of Nanny Tax Compliance

benefits of nanny tax complianceWhile it may be tempting to pay your nanny or other household employee “off the books,” the benefits of being compliant with tax and labor laws far outweigh the risks of not following the law. Plus you’ll have peace of mind knowing you are adhering to your requirements as an employer. And you aren’t the only one that benefits from paying your nanny legally – your nanny benefits too!

Benefits for the Family

  • You are setting the stage for a professional working relationship
    • Paying “off the books” goes against best practices and standards for household employment
  • Take advantage of tax breaks
  • Avoid expensive fines from the IRS and lawsuits from disgruntled nannies/other employees
  • Reduce legal risk and audit risk from the IRS

Benefits for the Nanny

  • Legal employment record and protections
  • Verifiable income
  • Unemployment insurance
  • Workers’ comp coverage
  • Health insurance
  • Credit worthiness
  • Compliance with federal and state tax laws
  • Social Security benefits

For more information, contact us at (518) 348-0400.