You’re about to employ an in-home caregiver, and you’re wondering if complying with California’s Nanny Tax Law has any benefits for you? The answer is “yes”, in more ways than one:
It feels good to be in compliance: You don’t need the aggravations and possible felony charges that may accrue when you don’t comply with the IRS’s regulations. Instead, being in compliance brings peace of mind and the ability to carry on in life without complications.
Your employees’ loyalties: Paying your employer taxes attracts the best professional employees and provides them with all the protections and benefits that other professionals enjoy, such as building up their Social Security accounts, Medicare, disability, unemployment, worker’s compensation, and more. It also enables them to build a credit history so they can qualify for future financial commitments. Complying with nanny taxes thus builds up loyalty among your household employees.
Savings, training, and control: If you’d hired your caregiver through a home care agency, you’d pay considerably more for her services. In addition, you get to interview and train your employee and control how she goes about conducting the tasks you assign to her.