Complicated Nanny Taxes Can Trip Up Families

How to Determine Household Workers’ Tax Status

The so-called “nanny tax,” which actually applies to any form of household employment, can be complicated for clients to deal with.  A client is treated as an employer if he or she pays more than $2,000 to a household worker per year.  Whether that worker is an employee or an independent contractor depends on the nature of the business arrangement.  Karen DeMasters, of Financial Advisor, explains how to handle this often tricky situation.

To read the full article in Financial Advisor, click: Complicated Nanny Taxes Can Trip Up Families.