Made famous during the days of President Clinton, both Zoe Baird and Kimba Wood helped to make Nanny Tax a well-known phrase. When you have a “household employee” earning more than $1,400 per year, knowing whether you are required to pay tax on this person is, according to the law, your obligation.
When Caroline Kennedy abruptly ended her Senate bid, her spokesman, Stefan Freidman, indicated that her reasons were unspecified. Yet, according to the New York Times, a source claimed that the decision was made when “problems involving taxes and a household employee surfaced.”
As pointed out in recently-overheard business advice given to a newly-minted female attorney, the last generation of women in law showed that gender-wise “the sky is the limit” but don’t forget to pay tax on your babysitter!
by Pat Sigmon, NY Business Examiner
Pat Sigmon is the founder and president of a computer consulting firm, as well as an advisor for other small business owners. Pat covers day-to-day news and issues concerning New York businesses. Contact her firstname.lastname@example.org.