Here’s a quick-reference guide to all Qs you’re positively longing to A. And if what you’re looking for isn’t answered below, email your query to info@poppinspayroll.com and we’ll get back to you within two business days.

1) Taxes and payroll reports are far from my forte. Is Poppins Payroll easy to use?

Yes. The initial sign-up process takes only about 10 minutes, and once everything is input in our system, there’s hardly anything you have to do at all. We let you know when and how much you need to pay your employee (we can even coordinate direct deposit), plus we take care of all your quarterly and year-end reporting. All you have to do is watch for our email alerts and e-sign and/or make changes when necessary.

2) How do I know Poppins Payroll won’t make a mistake?

When you use Poppins Payroll, you get the benefit of guaranteed accuracy and on-time remittance (payment) of your due taxes. Our experts understand every detail of these laws, so you can trust you’re in very capable hands. If anything were to ever go wrong, we’re here to fix the problem at absolutely no cost to you, no questions asked.

3) What fees are associated with Poppins Payroll?

Where some companies have contracts, hidden fees, confusing service menus and additional sign-up, quarterly, annual and a la carte costs, Poppins Payroll offers one all-inclusive package for one low monthly rate: just $39/month.

4) Am I a household employer?

You are considered a household employer if you (1) pay more than $2,000 a year to an individual who performs duties in or around your home (or outside your home if you are in a nanny share; see FAQ #8) and (2) if you have the right to control when, where, how or by whom the work is performed. Household employees include nannies, gardeners, nurses, housekeepers, personal assistants, estate managers, chefs, senior caregivers, etc.

5) Can I label my household worker an “independent contractor” rather than an “employee” and thereby avoid nanny tax liability?

No. Rather than leave worker classification up for interpretation, the IRS has definitively stated that household workers are employees, not independent contractors. Classifying and paying your household worker as an independent contractor is considered tax evasion and exposes you to liability.

6) What are my obligations as a household employer?

As a household employer, you must comply with certain tax obligations, commonly referred to as the “nanny taxes” or “household payroll taxes.” Generally, after you have registered with all the appropriate agencies, you must observe the following tax laws:

a) At every pay period, you must withhold Social Security, Medicare and income taxes from the employee’s paycheck and make employer contributions to the Social Security and Medicare withholding.
b) Quarterly, you must submit the proper paperwork and payments to the correct agencies. The agencies will typically include the IRS, state department of revenue, state department of labor and any other local agencies that require remittances, including certain municipalities.
c) After the calendar year-end, you must provide your employee with his or her W-2 form, submit such information to the Social Security Administration and prepare a Schedule H to file with your individual tax returns.

7) Can I just pay my household employee “under the table”?

It’s not worth the risk. It does not cost you much—in some cases, nothing (keep reading)—to comply with your legal obligations, and it provides your employee with important benefits for his or her future, including Social Security and Medicare.

Plus, paying nanny taxes may actually save you money in the long run. Employer contributions typically run around 10% of the employee’s salary, but you can offset some, if not all of the cost with things like flexible spending accounts and child and dependent care tax credits—benefits that are only available if you are legally reporting your childcare expenses. Most importantly, it’s illegal to not pay these taxes and noncompliance is punished with harsh penalties and late fees.

8) If I’m in a nanny share, do all the families have to pay nanny taxes?

Yes. Each family in a nanny share is treated as a household employer under the tax code, regardless of which house the nanny actually works in. Even though it may seem simpler for just one family in a nanny share to take care of the household employee taxes, this actually puts the other families at risk should they be audited. Each family should establish itself as a household employer with the state and federal agencies, and each family should pay the nanny their share of her wages separately.

9) I run my own company. Can I just add my household employee to that payroll?

No. In the eyes of the IRS, your household employee contributes to your household, not your business, which means that the employee should be at the expense of the household. Running the household employee through your business payroll puts you at risk for liability.

Poppins Payroll, LLC | 855-420-1919 | info@poppinspayroll.com © 2017 Poppins Payroll. All Rights Reserved.