• A household employer only has to pay social security and Medicare taxes only on cash wages paid to an employee that exceed the threshold amount for the year.
• If the amount paid is less than the threshold, no social security or Medicare taxes are owed.
• If social security and Medicare taxes must be paid, you will need to file Form 1040, Schedule H (PDF), Household Employment Taxes.
• You must withhold the employee’s portion of the social security and Medicare taxes unless you choose to pay both the employee’s share and the employers share.  The taxes are 15.3% of cash wages. Your share is 7.65% and the employee’s share is 7.65%.
• You may also be responsible for paying federal unemployment taxes, reported on Form 1040, Schedule H.
• You and your employee may agree for you to voluntary withhold income tax from wages paid to the employee, reported on From 1040, Schedule H.

Be careful to claim the Nanny. IRS always keeps a watch for this especially on higher dollar cases. They can easily find out by the reviewing of business or personal checks
Fresh Start Tax is one of the premier tax resolution firms in the country. We deal with all types of cases, individuals, business and high dollar corporate entities. We have a staff that specializes in every type of case. Some of our specialties include the following:

• Immediate Tax Resolution and Representation

• Offers in Compromise and Settlement

• Back Taxes/  Unfiled or Never filed tax returns

• Bank or Wage Levy Garnishments

• Letters of Intent of Notice to Levy

• IRS Tax Audits
• Hardship, part pay agreements

• State Sales Tax problems and Resolution

Our company resume:

• Our staff  has over 140 years of professional tax representation experience
• On staff are Board Certified Tax Attorney’s, CPA’S, former IRS Agents, Managers and Instructors.
• Former STATE Department of Revenue Manager and Instructor.
• We are extremely moral and ethical in ALL our business dealings
• We have the highest rating by the Better business Bureau
• We are fast, affordable and economical
• We are licensed to practice in all 50 States
• We put a premium on client communication.