“Nanny Tax” Threshold Increases

Tighe, Kress & Orr.

By: Tighe, Kress & Orr.

“Nanny tax” threshold increases to $2,100 for 2018. The Social Security Administration (SSA) announced that, if a household worker’s cash wages exceed the domestic employee coverage threshold of $2,100 in 2018, you must pay Social Security and Medicare taxes. This amount, which is adjusted for inflation, is up from $2,000 for 2017. The dollar threshold applies separately to each domestic employee, including nannies, housekeepers, cooks, gardeners and health care workers. Read the SSA’s information sheet here: http://bit.ly/2xJ4vss

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