You can easily generate Form W-2 for your nanny using the online tools provided by the Social Security Administration. Filing only takes a few minutes, but must be completed by January 31, 2020 for the 2019 tax year.
Provide the document generated by the online tool to your nanny, babysitter, or other household employee. Your household employee will use this for their own tax returns.
Steps to Generate a W-2 for your nanny
- Go to the online tool found at http://www.socialsecurity.gov/employer/.
- Click on the button to Log in to Business Services Online (or Register if you have not done so previously).
- Follow the instructions to report Wages to Social Security, and Create Forms W-2/W-3.
- Enter the information requested by the Social Security website
- Download the completed Form W-2, and provide this to your nanny for her own tax return.
For the Social Security and Medicare tax withheld, do I enter just the portion withheld from the employee’s paycheck or also the amount owed by me?
For Social Security and Medicare tax withheld, enter only the portion withheld from your nanny’s paycheck. The employer portion will come into play when you file form Schedule H with your own tax return.
What should I enter in the Social Security and Medicare wages box?
Social Security wages and Medicare wages will each be the same as the Taxable Wages amount, as long as your nanny makes less than $125,000 from you.
For California, where do I input information about employee paid SDI?
The amount your employee has contributed to CA State Disability Insurance Tax should be input to go in box 14: “Other”. Indicate with label of “CA SDI” and the amount withheld from your employees paychecks during 2019.
What else do I need to do for tax time?
With your own tax return, you will need to include form Schedule H and remit taxes withheld and owed at that time.