Household Payroll vs. Traditional Payroll: What’s Best for Nanny Services?
In childcare services, household payroll has its own unique rules and filing requirements. Make sure you have the right nanny payroll service on your side.
Household payroll -as opposed to the traditional payroll service- has many unique and often nuanced laws, specific regulations, and exceptions and exemptions that differ from corporate or business oriented payroll. Most payroll companies simply do not understand or handle household payroll issues properly. A Household payroll service will keep you up to date and in the know on all the latest domestic employer laws and regulations.
Another important item to keep in mind is when you hire a nanny, you, the employer, may qualify for a childcare related personal income tax breaks. There are two popular strategies that families with child care expenses use to minimize their personal income taxes and are in addition to the Child Tax Credit.
Again the above mentioned childcare related tax breaks and additional strategies come to you as an employer of a domestic only through a Domestic Payroll Service, not the traditional payroll service for general business employees.
So, we urge you to speak to a household payroll service and be informed before deciding on the payroll service you will engage! You have taken the utmost care to choose the right nanny service for your family, someone who is conscientious, experienced, and caring.
Choose wisely again – select a nanny payroll service provider who can manage all the administrative tasks associated with being a household employer like paying your employee, withholding and remitting taxes, and following tax, wage, and labor laws for household employees particularly tailored to the state you reside/employ in.
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