Legal requirements for nannies and personal employees

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Legal requirements for nannies and personal employees

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Legal requirements between an employee and an independent contractor. For an employee, we legally require to issue a W2 form, report their wages and taxes deducted each year. This is based on them being 18 years of age or older and earning $1700 a year or more. In addition to the legal requirement of filing the W2 form and withholding taxes, you're gonna incur payroll expenses of 10% to 12% that you have to pay. These cover Social Security, Medicare and unemployment. You don't have to worry that you have to take care of all of these. You can hire a payroll service to do this for you at relatively low cost. Whereas for an independent contractor, you have to issue a 1099 form which just reports the amount they earn in a year.

Watch Video: Legal requirements for nannies and personal employees by Christine Neilson, ...

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Christine Neilson

Financial Advisor

Christine Neilson is from London, England and moved to the United States in 1991. She has a BA with honors in Business Studies with an emphasis in  Finance from South Bank University in London. Prior to moving to the United States, Christine worked in the computer industry for seven years as an operator and programmer before becoming a Surveyor specializing in commercial real estate appraisal, acquisition and development.  Having recently obtained her California and Washington real estate licenses Christine is merging her extensive financial advisory and real estate experience to provide unique expertise to clients.

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