Do you employ someone in your home to care for family members or do other household tasks? If so, you may owe what’s commonly called the “nanny tax.” The Social Security Administration has announced that for 2020, the nanny tax will be due on a household worker’s wages when the wages exceed $2,200 for the year (up from $2,100 for 2019).
The nanny tax is comprised of Social Security tax and Medicaretax. The dollar threshold applies separately to each domestic worker you employ, including nannies, housekeepers, cooks, gardeners and health care workers. The threshold is adjusted annually for inflation.
If you have any questions, please contact one of our tax professionals at (973) 298-8500.
