The Compliance Process
Below is a summary of the compliance process required of household employers. The IRS estimates that these tasks will take the average household employer approximately 50-55 hours per year. If your time is precious or if you're not fond of government paperwork, rest easy knowing that we can handle it all for you.
- Register for federal and state tax accounts
- Complete and file New Hire Report
- Calculate the correct amount of federal and state taxes to withhold each pay period
- Track gross pay, net pay, federal taxes withheld and state taxes withheld
- Prepare state tax returns quarterly and remit both the employer and employee taxes
- Prepare federal tax estimates four times per year and remit both the employer and employee taxes
- Prepare year-end summaries to state tax agencies
- Prepare Form W-2 for distribution to your employee
- Prepare Form W-3 and send to the Social Security Administration (along with the appropriate copy of the completed Form W-2)
- Prepare Schedule H to accompany your personal income tax return
- Respond to IRS and state requests/inquiries
- Monitor ever-changing household employment tax law
If this process seems daunting, let us help. We can handle everything for you and provide unlimited support and expert guidance along the way. It’s like having a legal expert, an accountant, and an HR specialist at your side – for a fraction of the cost. When you compare around, we’re confident you’ll find us to be the most convenient, painless and affordable way to be fully compliant with federal and state tax law.
Please note that many states and municipalities have important nuances in tax law, labor law, and/or the compliance process. Give us a call and we'll give you a complimentary consultation so you'll be informed on all the local issues that may affect you.
If you’d like to visit with one of our experts to discuss your individual situation, run payroll & budget scenarios, or get answers and advice, please call us at toll free 888-273-3356 Monday - Friday anytime between 8:00am and 6:00pm Central Standard Time. We’re here to help.
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For employee payroll taxes (also called “nanny payroll taxes”) or help calculating the employee withholding tax rate, call the specialists at Breedlove & Associates at 888-BREEDLOVE (273-3356).