As the leader of a business myself, I love watching other local businesses grow. The Nanny Tax Company was founded in 1995 to meet a growing need, and is now an established local business that works with clients across the country, all run by four sisters out of Park Ridge. What a great story, and what a great service, especially because “Nanny Taxes” are for so much more than just nannies. If you have someone working in your home, whether it be childcare, cleaning or caregiving, you may need to pay household employment taxes, also known as "nanny taxes."
In 2025, the average starting rate for a nanny in Chicago is around $22/hour, and the weekly rate is $867 for a 40-hour week – these are not insignificant amounts of money, so it is important to understand the tax implications.
Over the years I have become a go-to person for all types of resources, many times totally unrelated to real estate. My clients and contacts know that I only work with the best of the best, and The Nanny Tax Company is one I am proud to add to my list! I recently chatted with Laura Weiland, leader of The Nanny Tax Company, and she helped provide a simple and very helpful breakdown.
What Are Nanny Taxes?
"Nanny taxes" are Social Security, Medicare and unemployment taxes for anyone working in your home. These taxes apply to all types of household help, not just nannies.
Why Household Help Aren’t Independent Contractors
If you control your worker's schedule or provide tools, the IRS considers them an employee, not an independent contractor. Misclassifying workers can result in fines or an audit.
Why This Matters
Paying “nanny” taxes ensures your worker receives fair pay, builds a legal employment history, and can qualify for Social Security benefits. Plus, you’ll have peace of mind knowing you’re following the law and avoiding potential penalties.
A few quotes from happy clients
- "Your office made the entire process very easy and painless. The tax forms already completed, along with mailing instructions. All I needed to do was to sign and put in the mail. Thanks again!"
- "It was quite a daunting task but we wanted to do the right thing and make sure our wonderful, loving nanny was properly paid and taken care of. Thanks for making that happen."
- "I have said this before, but working with you all have been the best money I have ever spent"
- “I can’t say enough good things about your organization. I’ve had the privilege of contacting just about everyone in your office with uniform good results."
Need Help with Nanny Taxes?
The Nanny Tax Company is a local, family-owned business with 30 years of experience handling these taxes. We take care of all the paperwork and filings, so you can focus on what matters most - your family!
Call us at (847) 696-7260 or visit www.nannytaxprep.com for more information.
