Learn about the nanny tax

If you have a nanny or frequent babysitter for your child, you need to understand the nanny tax. The IRS requires anyone with household help, such as a babysitter or housekeeper, to pay Social Security and Medicare taxes if annual pay crosses a set threshold, which was $1,600 for 2008 and $1,700 for 2009, 2010 and 2011. To learn more visit this nanny tax calculator in order to calculate the nanny tax with accuracy