Tuesday, January 25, 2011

Part 2: How to Hire a Nanny

If you haven't read it yet, check out Part 1 below. Part 2 doesn't necessarily have sequential steps, as they can really be done simultaneously, or in any order you prefer (except where noted). Please note, this is the part in which you become a "business" - it will also make you feel old and important. The documents are linked below, although simply googling the name will bring them up.
  • Get a Federal EIN (Employer ID Number). You will need this for a number of forms, so this step you should probably do first. It's easy to get it instantly online...you just need your Social Security Number.
  • Ask your nanny to fill out an I-9, which indicates she is legal to work in the US. Make copies of her IDs. Save this in your files.
  • Ask your nanny to fill out an M-4 for state withholding and an W-4 for federal withholding. Make note of their deductions, but otherwise, save this in your files.
  • Call your insurance agent and get Workers Compensation Insurance for your nanny. It should cost about $250/year.
Next up, determining withholding amounts and paying taxes for your nanny.