Household Employment in 2014: What Tax Preparers Need to Know

Tom Breedlove

For tax professionals, the time between the extended filing deadline and the beginning of the New Year is a time to rest, regroup, and reorganize in preparation for the tax season. There are always modifications to the tax code as well as numerous new federal and state laws to decode and distill. Individuals who employ domestic workers (e.g., nanny, senior caregiver, housekeeper, personal assistant) must be especially cognizant of the related reporting and compliance requirements at year-end. Sometimes referred to as “nanny taxes,” these obligations are somewhat similar to those of a commercial employer, but the process, forms, deadlines, and labor laws are unique for household employers.