{"id":450,"date":"2020-12-18T07:00:00","date_gmt":"2020-12-18T07:00:00","guid":{"rendered":"https:\/\/perfectfitnanny.com\/blog\/?p=450"},"modified":"2020-11-11T14:12:00","modified_gmt":"2020-11-11T14:12:00","slug":"why-nannies-are-not-1099-contractors","status":"publish","type":"post","link":"https:\/\/perfectfitnanny.com\/blog\/why-nannies-are-not-1099-contractors\/","title":{"rendered":"Why Nannies are Not 1099 Contractors"},"content":{"rendered":"\n

If you\u2019re thinking of hiring a nanny to care for your kiddos, you might be wondering how the actual hiring <\/em>works. You\u2019re not a business owner, so they\u2019re not an employee, right? Aren\u2019t nannies considered independent contractors?<\/p>\n\n\n\n

While it\u2019s a common belief that nannies are just paid like contractors, the truth is they are, in most cases, considered household employees by the government. Yes, even part-time nannies! This is important for both you and your nanny to know since it impacts your taxes, but don\u2019t worry. We break down all the details about it below.<\/p>\n\n\n\n

When is a nanny considered an employee?<\/h2>\n\n\n\n

\u201cCan\u2019t I just pay my nanny and have them pay taxes?\u201d This is a common question we get at A Perfect Fit, and the answer is usually no. Here\u2019s why:<\/p>\n\n\n\n

Your nanny is considered a household employee when you control the work they do, and also <\/em>how they do it. When you hire a nanny, you are setting their hours, requesting certain help (i.e. grocery shopping, transportation, tutoring, etc.), and expecting them to take care of your children to your standards. All of that is great, but it\u2019s also what is expected of an employee<\/em>.<\/p>\n\n\n\n

Think of it this way: Plumbers, HVAC repairmen, electricians, and other people you hire for their work are considered independent contractors. You hire them for their services, but you don\u2019t have any say over when they arrive, how many hours they work, or what exactly they\u2019ll do.<\/p>\n\n\n\n

The only time this may not be true is if you have a temporary nanny or occasional child care provider. However, if you pay them wages of $2,200 or more for 2020 (this amount can change from year to year), then you\u2019ll also need to pay them as an employee!<\/p>\n\n\n\n

What if I\u2019m unsure about my nanny\u2019s work status?<\/h2>\n\n\n\n

If you\u2019re still unsure whether your nanny meets the requirements to be considered a household employee, you or your nanny can fill out and turn in a Form SS-8<\/a> to the IRS. This form helps you determine your nanny\u2019s status through a series of questions.\u00a0<\/p>\n\n\n\n

However, you may not want to wait that long for the IRS to get back to you. If you pay your nanny makes at least $2,200 annually for hours worked and you control and direct their role, it\u2019s pretty safe to say that they\u2019re your employee.<\/p>\n\n\n\n

Does my nanny get a W-2 or 1099 form?<\/h2>\n\n\n\n

As your employee, your nanny gets a W-2 form<\/a> so they can file their tax return. Independent contractors get a 1099 form for their taxes. Both report income a person earns throughout the tax year, but they differ in tax withholdings and the information each form shows.\u00a0\u00a0<\/p>\n\n\n\n

For your own taxes, you should also complete a Schedule H form<\/a>, aka Form 1040 or 1040-SR, which outlines the wages you paid your nanny and any other household employee over the year.<\/p>\n\n\n\n

What happens if I make a mistake?<\/h2>\n\n\n\n

If you mistakenly classified your nanny as an independent contractor and gave them a 1099 form, you\u2019ll need to issue them a W-2, as well as pay them back for taxes they paid on your behalf. <\/p>\n\n\n\n

Giving them the wrong form and classifying them incorrectly is considered tax evasion from the IRS\u2019s point of view. You might need to pay additional fines for the mistake, too.<\/p>\n\n\n\n

Why it matters that you pay nannies as an employee<\/h2>\n\n\n\n

Unfortunately, many nannies and other household employees are classified wrongly or even kept \u201coff the books\u201d to avoid paying taxes<\/a>. That may mean they\u2019re being paid below minimum wage and missing out on benefits from their employer.<\/p>\n\n\n\n

When you classify your nanny as an employee, you pay them fairly and legally. This also gives nannies verifiable income to be used as a reference when buying a car, renting an apartment, or opening a new credit line. Plus, you might qualify for tax breaks, so it\u2019s in your best interest to hire your nanny the right way. <\/p>\n\n\n\n

Hire a nanny with A Perfect Fit<\/h2>\n\n\n\n

Still unsure about the legalities of hiring a nanny? We can help! The team at A Perfect Fit has over a decade of experience in the nanny industry. We\u2019ve helped countless families in Phoenix, Dallas, Denver, and Miami find the best nanny for their kids. We also partner with an amazing payroll company that does all the work for you, so you don\u2019t have to worry about employment taxes or making mistakes!<\/p>\n\n\n\n

With our experience, commitment, and passion for child care, we\u2019re here to answer all the questions you may have about finding the perfect nanny for your family. Choose your city and contact A Perfect Fit<\/a> today to begin your search!<\/p>\n","protected":false},"excerpt":{"rendered":"

If you\u2019re thinking of hiring a nanny to care for your kiddos, you might be wondering how the actual hiring works. You\u2019re not a business owner, so they\u2019re not an employee, right? Aren\u2019t nannies considered independent contractors? While it\u2019s a common belief that nannies are just paid like contractors, the […]<\/p>\n","protected":false},"author":1,"featured_media":451,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[30,31],"tags":[74,53,36,26,32,50],"_links":{"self":[{"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/posts\/450"}],"collection":[{"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/comments?post=450"}],"version-history":[{"count":1,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/posts\/450\/revisions"}],"predecessor-version":[{"id":452,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/posts\/450\/revisions\/452"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/media\/451"}],"wp:attachment":[{"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/media?parent=450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/categories?post=450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/perfectfitnanny.com\/blog\/wp-json\/wp\/v2\/tags?post=450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}