Hiring a nanny for summer child care? Don’t forget a W-2 form

When school’s out, parents might need a nanny to take care of their children — and they may also need to file taxes for that babysitter.

Hiring a nanny can be expensive. The average cost of care for one child for 40 hours a week in New York City is $17.50 an hour, or more than $3,000 a month, according to child-care website Care.com. Paying that much makes you an official employer by the Internal Revenue Service’s standards, which means you have to withhold your employee’s payroll taxes, such as Social Security and Medicare.

The rule is known as the “nanny tax,” though it applies to anyone who works in the home and paid more than $2,100, including housekeepers, maids, babysitters and gardeners.

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