Term of the Day: Nanny Tax

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	INVESTOPEDIA Term Of The Day August 5, 2015 Nanny Tax A federal tax that must be paid by people who hire household help (a babysitter, maid, gardener, etc.) and pay them a total of more than a specified threshold amount during the tax year. The reason the IRS charges the nanny tax is because it considers an ongoing household helper to be the taxpayer's employee. As such, the taxpayer becomes an employer and must pay Social Security, Medicare and federal unemployment taxes on the wages paid to that employee. There may be state-level nanny taxes as well. Investopedia Explains: The nanny tax does not apply if the babysitter is the taxpayer's parent, spouse, or if the babysitter is under 18 and is not primarily engaged in... Read More Related to "Nanny Tax" Capital Gains Tax A capital gains tax is imposed on the profits realized when an investor or corporation sells an asset for a higher price than... Read More Understand the Different Types of Inflation At its most basic level, inflation is a general increase in prices across the economy and is well known to all of us. After all, who among us has not... Read More Centrally Planned Economy A centrally planned economy is one where the government controls the country's supply and demand of... Read More Recently Added Definitions Lead Reinsurer The reinsurer responsible for negotiating the terms and rates of a reinsurance treaty that other reinsurers participate in. The lead reinsurer, also known as... Read More Industry Loss Warranty An insurance or reinsurance contract in which coverage is triggered when the losses experienced by an industry exceed a... Read More Related Definitions Tax Planning Tax Evasion Luxury Tax Tax Rate Payroll Tax Past Terms of the Day Dog And Pony Show Topless Meeting Hedging Transaction Bogey Xetra You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: