nanny tax

Re: nanny tax

• snassery

  May 2010

  I got a business checking account online through Bank of America, and I use their payroll/tax service.  It's a pain in the neck to set up (you have to get federal tax numbers, state tax numbers, etc.).  However, they have all the forms online for you for each step, so you can just print them out and send them in and enter the tax ID numbers as you receive them.  

  We can direct deposit the paycheck with a click of a button, and file all tax forms/pay taxes with one click.  Definitely worth the monthly fee to have someone else calculating and filing all the SSN, medicare, etc.

   It probably took me a total of 4-5 hours work to get all the stuff together and set up, and then each month it takes me approximately 2 minutes to run payrolls and file forms/pay taxes.  Cheaper than an accountant!  (And my personal accountant uses BoA service for his office payroll, and that's how I heard about it.)  

   There are some websites that come up if you google "nanny tax" but the fee is the same as my bank and it is so much easier to transfer money back and forth from my personal checking by using the same bank.

  Good luck!

   

   

   

   

   

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• wbl

  May 2010

  I use Breedlove for payroll services and taxes.  www.breedlove-online.com

  They are fan-freaking tastic.  They take care of everything - figuring out the taxes, the forms, direct deposit from our bank account into our nanny's bank account, etc.  I really can't say enough good things about them.  They take care of filing all the papers to get an employer ID for you - all you have to do is sign them and send them back to Breedlove.  They do charge a fee, but I think it's more than worth it than having to figure it all out myself.  They have some free services they offer on their website, so definitely check them out even if you don't want to pay a service. 

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