Does my nanny need to use the new federal W-4 for 2020?

Does my nanny need to use the new federal W-4 for 2020?

Household employees with a 2019 Federal W-4 on file can continue to use elections from that version for 2020. Alternatively, they can choose to switch to use the new form at any point during 2020.

New employees should use this new W-4 form for 2020, which was one of the tax changes for 2020. Additionally, if your household employee wishes to revise their elections, they should switch to the new 2020 form.

Do I need to withhold income tax when paying my nanny?

Per the IRS, withholding income taxes is not mandatory for household employers. However, your nanny still may owe income taxes on this income. You should agree ahead of time with your nanny whether you will or will not withhold income taxes on her behalf so she can plan accordingly.

If you do not withhold income taxes on you nanny’s behalf, then these changes to the W-4 will have no effect on your nanny’s paycheck.

Can I configure the new W-4 in the Nanny Pay Advisor app?

The Nanny Pay Advisor iOS app and Android app support both the 2020 W-4 Form and the 2019 W-4 Form. Use the Withholding page to input in the responses for each question from your nanny.

The updated brackets for 2020 will start with pay statements covering time January 1, 2020 and beyond.  Prior to that, the 2019 tax brackets will continue to be used.

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