Nanny contracts can be short-term and easy to understand. They are able to also be long and complicated, depending on the wishes of the moms and dads and nanny. No matter what, parents routinely create five mistakes in writing an agreement for their nanny. The effects of those mistakes can be serious and may include back taxes, penalties in addition to governmental audits. Nanny Contract Mistake 1 The first mistake requires dealing with the nanny for an independent contractor. In accordance with the IRS, workers fit in one of two categorizations: independent contractors or employees. An employer owes taxes on income paid to a worker. An employer doesn't, however, owe taxes on money paid for an independent company. By determining the distinction, the IRS examines whether a company has the right to direct or control the job carried out as well as how the work is accomplished. With respect to a nanny, families have a great deal of influence. To illustrate, parents expla...
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