Is anyone here familiar with nanny taxes? I keep trying to figure it out...but it all seems confusing. Do you withhold each time you pay? Or just deal with it at the end of the year? My SIL will be watching the twins one afternoon a week, and while we will be paying her, I'm honestly not too worried about dealing with it for her. But for one afternoon a week, we will be hiring a nanny....and even though it's just 4 hours a week, over a year, they will meet that threshold for having to pay household employee taxes. I'm going to start interviewing nannies soon...and just don't know what to expect in terms of paying the nanny, and dealing with taxes.
Has anyone used a payroll service to pay their nanny? Thinking it might just be easier to pay the $30 a month to have someone else deal with the tax BS -_-