New Tax Rule for Paying Nannies Through Online Apps
Do you use apps like Venmo or Paypal to pay your nanny? As of January 1, 2022, those platforms are required to report more than $600 yearly income to the IRS. 1099-K forms (Payment Card and Third-Party Network Transactions) for the 2022 tax year will be sent to employers early next year.
We highly recommend using a payroll company (we work with GTM) to avoid having your nanny misclassified as an independent contractor instead of your employee. Your nanny is considered an employee and does require a W-2.
You can see more information about this new tax reporting rule here.
Using a reputable payroll provider like GTM helps families avoid misclassifying their nanny and other labor law missteps. They’ll ensure you’re paying