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If I pay a nanny less than $2100, does that mean I am free from any and all tax obligations concerning the nanny?

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My wife and I are thinking about hiring a nanny for an upcoming four day stint. The total pay will be less than $2100, the 2019 nanny tax threshold.

Does that I mean I can simply pay the agreed upon hourly rate to the nanny and have no additional tax obligations concerning the nanny? No tax filing obligations? No withholding? No paperwork of any kind?
 


LdiJ

Senior Member
My wife and I are thinking about hiring a nanny for an upcoming four day stint. The total pay will be less than $2100, the 2019 nanny tax threshold.

Does that I mean I can simply pay the agreed upon hourly rate to the nanny and have no additional tax obligations concerning the nanny? No tax filing obligations? No withholding? No paperwork of any kind?
Who is it that you are thinking about hiring? If you are hiring someone who works for an agency and is paid regular wages by the agency then its a moot issue anyway.

If you are hiring a friend or acquaintance I agree that since you are paying them less than the threshold, you have no further obligation.
 
This would likely be with a candidate found through care.com, a site that matches nannies with those seeking nannies. They are a matchmaker service. They do not employ nannies and offer them as a service. They do offer a pay service that takes care of nanny taxes for you for a fee, but that's the exception that proves they-arent-an-agency rule.
 

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