Guy Maddalone

Your clients with household help — such as nannies, housekeepers and senior caregivers — may be paying their workers through a mobile app like Venmo or PayPal. It’s quick and easy, but thanks to a new tax-reporting rule, it may no longer be a good idea.

While “after-the-fact” taxes may seem easy, a lot can go wrong for you and your client.

Household employment has its share of nuances that may catch accountants and families off guard, cause noncompliance, and cost your clients money. Here are some of the typical tax season mistakes we see made by accountants and families and how to fix them.

Here’s what CPAs and their clients need to know when hiring an employee.

For families who employ a nanny to care for their children in the home, there is the extra concern of what to do with their employee.

As you’re gathering documents this tax season and preparing personal tax returns, you may come across clients who have employed domestic help in the past year.

When your client employs someone to work in their home like a nanny, housekeeper or senior caregiver, they may owe household employment taxes or “nanny taxes.” A lack of preparation, knowledge and/or communication can cause unneeded stress during busy season.

While you may have “nanny taxes” covered for your clients who have hired household help, there may be other compliance problems, including fines