Hello! and child care question

MaryTime

Hey everyone - I'm Kristi, mom to a 12-week old baby boy. I live in Midtown and I'm going back to work this week. I am trying to get child care sorted out. We are covered for the next few months, but come fall, I'll need a longer term solution. We are weighing daycare (we are no. 1 on the waitlist at a nearby center) vs. taking our son to someone's house vs. in-home care. We only need care 2x a week for a total of about 22 hours.

So here's my main question - How does the nanny tax work in GA? I understand  that 13.3% goes toward Social Security and Medicare (5.65 from me and 7.65 from the employee's pay). I think I also have to pay .8% for federal unemployment on the first 7k of the nanny's pay. Does GA require a state unemployment tax?

Do I just deduct the money I owe so I have it set aside come tax day? I'd rather take care of this myself than pay even more to have a company handle it.

Because there are no intown centers that offer part-time care, we were planning on going with an in-home option, but this tax stuff is driving me crazy!

TIA

MaryTime

oh ... and I'm not 50 weeks pregnant. I just haven't gotten around to updating that

almostanO

welcome!  sorry I don't have any answers for your tax questions I just wanted to say Hello.  We also live in midtown.

Daisy22

You have it backwards - employee is 5.65 and employer is 7.65.The problem you might run into is that some nannies want their employer to pay the whole 13.3% on top of their salaries. When we looked into a nanny this was our problem and was going to cost us a lot. GA does have an unemployment tax but I'm not sure of the rate. Look at the GA dept of labor website

My oldest started out at a center but then we switched to an inhome daycare part time.  Now he's back at the center part time and baby is at inhome. We live in midtown too and daycare is hard down here not to mention expensive

mlhhomier

It's a pain but doable. YOu have to register 3 places - Ga Dept of Labor, GA Dept of Revenue and with the IRS. I had a nanny from 2008 until 2010. I had to pay quarterly employment taxes to Dept of Labor and file and pay the amount of state tax I withheld from my employee's taxes to the Dept of Revenue. I paid Federal taxes at the end of the year. I paid my nanny a set amount and called that her net and then used a gross-up calculator to determine her gross amount and marked the difference as the various taxes - GA income, Federal Income, SS, Medicare. I had to file W2s with IRS and State Dept of Revenue at the end of the year. It is a pain but doable. THere is a lot less hassle if you take them to somoene else's home 'cause then they are self-employed, running a business out of there home and then they pay taxes. I don't know that I'd want to deal with the household employer tax stuff for 22 hours a week.