Budgeting, building, fooding and other tips for those of us with champagne taste on a beer budget

Budgeting, building, fooding and other tips for those of us with champagne taste on a beer budget

How to pay Nanny Taxes

How to pay Nanny Taxes

There are lots of services out there for making Nanny payments and tracking paychecks. I’ve found it’s not so bad to do yourself and it’s cheaper. Once you get the hang of it, it’s not bad, just keep track of your payment due dates. I typically put a calendar invite 2 weeks before it due.

Calculating the payment amount can be a little tricky because the months don’t always end in alignment with your nanny’s paychecks. There’s a couple of ways to handle it; you can either slightly overpay/underpay knowing that you’ll catch-up and be square at the end of the year or else calculate it using your trusty hour logging spreadsheet.

I built a quarterly calculator into the hours log to help distinguish between the State and Federal taxes that are due each quarter – of course, the State and Federal quarterly dates don’t line up. Please keep in mind this is for Washington State.

Making Payments Quarterly

Here’s the process I follow each quarter – I try to shoot for at least a week before the due date on a weekday because according to https://www.irs.gov/payments/direct-pay it’s not available 24-7 and late payment resulting from the IRS system being down are your fault.

How to make Federal payments

Here’s the link: https://www.irs.gov/payments

2017 Form 1040-ES Estimated Tax Payment Due Dates

  • 4/18/2017 – Payment Voucher 1
  • 6/15/2017 – Payment Voucher 2
  • 9/15/2017 – Payment Voucher 3
  • 1/16/2018 – Payment Voucher 4

How to use the IRS Direct Pay System

Here’s the general process I use for making Federal payments for our Nanny.

  1. Go to IRS Direct Pay
  2. Select a method for “Pay Your Taxes Now”, such as “Direct Pay”
  3. Under Reason for Payment select: Estimated Tax
  4. Apply Payment to: 1040ES
  5. Select the current year for the Tax Period
  6. Select Continue and please confirm continue
  7. Verify your identity by selecting Tax Year for Verification, filing status, and your personal information
  8. Enter your Payment Information
    • Select payment amount
    • Enter banking information
    • Print and save PDF

How to make Washington State payments

Here’s the link: https://secureaccess.wa.gov/

Don’t miss the deadline – there is a $25 fee.  Even if you have no payroll to report, you still have to report!  Here are the 2017 State wage & tax report due dates (wage and tax reports are due one month after the end of a quarter).

2017 State Payment Dates

Due dates Quarter Dates included in quarter
April 30 1st January 1-March 31
July 31 2nd April 1-June 30
October 31 3rd July 1-September 30
January 31 4th October 1-December 31

From <http://www-stage.esd.wa.gov/uitax/taxreportsandrates/fileandpaytaxes/when-taxes-are-due.php>

How to use the State EAMS for Payments

Here’s the general process I use for making WA State payments for our Nanny.

  1. Enter your User ID and password and select login
  2. Select EAMS
  3. Select the appropriate business number.
  4. Under Quarterly Reporting, Select File UI quarterly report, select quarter to make payment and select next
  5. I typically enter all 0’s for “Exempt Corporate Officers”, which you likely will as well
  6. Select Hand-Key
  7. Manually enter employee information
  8. My total excess wages is typically 0 and my total employees is 1 for each month (if you have two nannies, a housekeeper, or other person you’re employing you’ll need to adjust according)
  9. Submit the report, select “pay taxes electronically”
  10. Enter Payment Amount
  11. Submit and Print to PDF for your files