What is the name of your state (only U.S. law)? Washington
My question is this. If I am a nanny for a family and we are doing it completely legal, having federal, social security, etc taken out of each check (and them matching it) what are the taxes like for me when I go to file the beginning of the year? I have heard from a couple who've done it this way that it's as if you're a business owner and have to pay state taxes (which, I think is about 20% of what you make and file in January instead when state taxes are due?) It just doesn't seem quite right to get taxed that way when the income would be ridiculously low if taxed that way when I only work part time. I emailed someone from state taxes but have not heard back yet. Just wanted to figure it out to know if I need to pull extra money out or not from checks.
My question is this. If I am a nanny for a family and we are doing it completely legal, having federal, social security, etc taken out of each check (and them matching it) what are the taxes like for me when I go to file the beginning of the year? I have heard from a couple who've done it this way that it's as if you're a business owner and have to pay state taxes (which, I think is about 20% of what you make and file in January instead when state taxes are due?) It just doesn't seem quite right to get taxed that way when the income would be ridiculously low if taxed that way when I only work part time. I emailed someone from state taxes but have not heard back yet. Just wanted to figure it out to know if I need to pull extra money out or not from checks.