Nanny Tax Threshold Increases

Nanny Tax Threshold Increases: The Social Security Administration has announced that for 2014, the "nanny tax" threshold will increase to $1,900 from $1,800 for 2013. Cash remuneration paid by an employer for domestic services in the employer's home is not subject to FICA tax if the amount paid during the year is less than $1,900 for 2014. If cash paid to a household employee is equal to or more than $1,900 for 2014, then all of the cash paid to the employee is subject to FICA taxes. The threshold applies separately to each domestic employee.