Do You Have a Written Work Agreement?

Why Nannies Need Written Work Agreements By Tom Breedlove, Breedlove & Associates, LLC A Virginia family began searching for a nanny to care for their new bundle of joy. After an emotionally-draining six-week quest to find the ideal nanny, they hastily agreed — verbally — on a work schedule and hourly rate. The nanny started […]

Non-Taxable Forms of Compensation

Health Insurance Tax Credit I work as a nanny and needed health insurance desperately. Lucky for me, Tom Breedlove of Breedlove & Associates answered my questions, and my employer’s questions, without a consultation fee! First, I went to the Heatlh Reform In Action web site to find the most affordable individual health insurance available in […]

Special Tax Advantages for Short-Term, Part-Time, Share-Care Nannies

Families who hire on a short-term (i.e. summer nannies), part-time, or shared basis have a unique tax advantage. Since employer taxes are tied to wages, these families typically have a much smaller tax obligation but still get to take full advantage of the tax breaks. Here’s an example: The Smiths hire a summer nanny and […]

Taxes for Nanny-Shares

Nanny Tax Dilemma: Nanny-Share Arrangements By Tom Breedlove A nanny-share is defined as two families sharing the expense of employing a nanny to care for their children as a group. The nanny and children may alternate between the two family homes, but care is provided to the children of both families as one job for […]

Can I Pay My Nanny On My Company Payroll?

Nanny Tax Dilemma: Paying a Household Employee on the Company Payroll By Tom Breedlove This week we are discussing common nanny tax dilemmas. Yesterday, Tom Breedlove of Breedlove & Associates explained the common misperception that families can classify a domestic worker as self employed (an independent contractor). He explained that the IRS has ruled definitively […]

The 1099 Trap: Nannies Are Not Self Employed

Tax Season Dilemmas for Nannies By Tom Breedlove There is a fairly common misperception that families can classify a domestic worker as an independent contractor if they want to. Thanks to misinformation floating around on the Internet — and sometimes even bad advice from a general tax professional — some families are misled into thinking […]