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1 year ago
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What Is a Nanny Tax?
People who employ someone to help them in their household chores such as babysitting or cooking and pay them wages over a certain amount levied to a federal tax, called nanny tax. In 2022, the threshold for nanny tax is $2,400, and for over this amount, social security and Medicare taxes must be withheld at a rate of 15.3%, with the employer and employee each paying half (7.65%). This tax law enables household employees to receive covered employment benefits and protections.
