Hey neighbors! Here's a PSA in honor of International Workers' Day <https://en.wikipedia.org/wiki/International_Workers%27_Day> (yesterday, May 1st) ... do you withhold unemployment taxes from your at-home child care? As employers, we have a responsibility to provide a respectful and sustainable working environment for those who care for the ones who are most dear to us. An accountant helped me to set this up (VERY helpful) but it's definitely possible to do yourself. Some links to helpful reading material follow, as well as some of the benefits to complying with nanny tax laws in PA. cheers! Lauren https://www.picpa.org/articles/picpa-news/2014/12/01/do-i-need-to-withhold-t... http://www.myhomepay.com/Answers/State-Nanny-Tax/PA/Compliance-Benefits THE BENEFITS OF COMPLIANCE Complying with nanny tax laws in Pennsylvania provides three significant benefits to families and their employees: 1) *Audit & Lawsuit Prevention. *Families who pay legally don’t have to worry about legal disputes from disgruntled former employees or IRS audits or charges of conspiring to commit tax evasion — a serious charge that carries heavy fines and potential jail time and loss of professional license. Think of it as insurance against tax and legal problems. 2) *Tax Breaks. *There is a common misperception that compliance is expensive. The truth is that most families — regardless of their income level — qualify for tax breaks that offset a large portion of the employer tax costs. There are two tax breaks available to families: a) Dependent Care Flexible Spending Account (FSA). Families may pay for up to $5,000 of dependent care expenses using pre-tax dollars. Depending on the family’s marginal tax rate, using pre-tax dollars can save up to $2,300 each year; b) Child or Dependent Care Tax Credit (IRS Form 2441). Families may itemize childcare expenses of up to $3,000 per child per year (maximum of $6,000). For most families, this tax break will yield an annual savings of $600 for one child and $1,200 for two or more children. 3) *Professional Benefits. *When a family pays legally, their employee receives important short-term and long-term benefits, such as Social Security, Medicare, unemployment, workers’ compensation, healthcare subsidies and the ability to obtain loans and credit. These benefits and protections have a dramatic impact on the perceived professionalism of the position and, therefore, the quality and duration of the employment relationship.