Nanny Payroll Tax Changes for 2011 By Kathy Webb 4NannyTaxes.com It's the start of a new year and time to do your taxes! First let your employers know immediately that there has been changes to payroll deductions.
Employers, please make sure to recalculate your nanny's payroll deductions prior to issuing the first 2011 payroll. There have been changes to the Social Security tax rate, the Federal income tax rates, and many state income tax rates.
1. The Making Work Pay temporary tax credit, enacted in March 2010 expired December 31, 2010. This means that even though Congress and President Obama extended the Bush era income tax rates, most nannies will see an increase in their withhold tax due to the credit expiration.
2. The Employee Social Security Tax contribution rate is reduced for 2011 only to 4.2%. The nanny employer rate remains at 6.2%.
HomeWork Solutions' popular Nanny Tax Calculator has been updated to include the 2011 employment tax changes. Please be sure to select 2011 from the tax year drop down. Click here to see the entire article and to visit the 4nannytaxes.com blog.
Are you tax compliant? Do you and your employers pay your payroll taxes?
HomeWork Solutions' popular Nanny Tax Calculator has been updated to include the 2011 employment tax changes. Please be sure to select 2011 from the tax year drop down. Click here to see the entire article and to visit the 4nannytaxes.com blog.
Are you tax compliant? Do you and your employers pay your payroll taxes?
