Nanny Tax

Nothing says “financial comfort” quite like having a household staff. And lucky us, thanks to a recent financial windfall of epic proportions, we’ve been able to go out and hire a full-time maid, butler, nanny, groundskeeper, and an award-winning chef who specializes in making dishes out of our all-time favorite food: bacon. Life is good.

But one thing that we should keep in mind is that, now that we have this household staff in our employ, we need to start paying a little something called a “nanny tax.” The nanny tax is a federal tax that folks like us get to pay because the IRS considers our staff employees, and considers us employers. Therefore, if we’re paying our people more than a certain specified amount (in 2018 it was $2,100 annually), we’ll need to get ourselves an employer identification number and pay taxes like other employers do. Depending on which state we live in, we might have to pay a state-level nanny tax as well.

But whatever. It’ll all be worth it when we’re chillin’ in our pristine backyard munching on a platter-full of delicious, bacon-themed culinary delights.