You can generate Form W-2 for your nanny using the online tools provided by the Social Security Administration. Filing only takes a few minutes, but must be completed by January 31, 2025 for the 2024 tax year.
Provide the document generated by the online tool to your nanny, babysitter, or other household employee. Your household employee will use this for their own tax returns.
Steps to Generate a W-2 for your nanny
- Gather Form I-9 your nanny completed around first day of employment. You will need this for your employee’s SSN and home address.
- Go to the online tool found at http://www.socialsecurity.gov/employer/.
- Click on the button to Log in to Business Services Online (or Register if you have not done so previously).
- Follow the instructions to report Wages to Social Security, and Create Forms W-2/W-3.
- Enter the information requested by the Social Security website
- If using the Paycheck Nanny app from an iOS device, go to the Pay History page. Choose Last Year, and get details from the […] button.
- If using the Paycheck Nanny app for Android, this information is found on the Reports page. Select the option to display report for the prior year.
- Download the completed Form W-2, and provide this to your nanny for her own tax return.
What to enter in each W-2 box
Boxes a – f Employee and Employer identification info
Enter name, addresses, and other information to identify you and your nanny in Boxes a, b, c, e, and f. Box d will be left blank.
You can find your employee’s SSN and home address on Form I-9 that your nanny completed around first day of employment.
Box 1
The amount you need to enter into Box 1 is listed as Taxable wages on the Paycheck Nanny app.
This includes regular, overtime, bonus or other taxable pay for your nanny. If you are paying all of the FICA taxes on your nanny’s behalf, instead of withholding half of total Social Security and Medicare from their paycheck, the employee portion of FICA is also included in this amount.
This does not include SIMPLE IRA retirement plan contributions or Health Insurance benefits.
Box 2
Enter in the amount of federal income tax withheld. If you did not withhold income tax from your employee’s paycheck, this will be 0.
Box 3
Social Security wages is often the the same as the Taxable Wages specified in Box 1.
One exception is if you as the employer also pay the employee’s portion of FICA for them. In this case, Box 1 value will be greater than Box 3. This extra employee portion of FICA paid by you should be included in Box 1 but not Boxes 3 or 5.
Another exception is if participating in a SIMPLE IRA retirement plan, your nanny’s contributions are included as Social Security and Medicare wages, but not taxable wages in box 1.
Box 4
Enter the amount of Social Security tax withheld from your employee’s paycheck.
Don’t worry about the employer portion when creating a W-2. That will come into play when you file form Schedule H with your own tax return.
Box 5
The Medicare wages will be the same as Box 3, as long as your nanny has earned less than $160,200 from you, which is the cap on Social Security wage base but not Medicare.
Box 6
Enter the amount of Medicare tax withheld from your employee’s paycheck.
Don’t worry about the employer portion for creating a W-2. That will come into play when you file form Schedule H with your own tax return.
Box 12
If you employee has contributed to a SIMPLE IRA, specify the employee’s total contribution with code S. Note that any employer contribution to the SIMPLE IRA is not included on Form W-2.
If you have reimbursed Health Insurance costs for your nanny, enter the available amount in Box 12 with code FF, which is reserved for QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) benefits. Note that the amount available should be entered here, even if the employee did not request reimbursement of the entire amount.
Box 13 Retirement Plan
Check the Retirement Plan box if your nanny has SIMPLE IRA or other retirement plan contributions.
Box 14 Other
This box is used to provide record of additional employee paid taxes, such as Disability or Family Leave taxes for states that have those. Employees who itemize deductions on their tax returns may be able to deduct these amounts from their income tax liability.
California: Enter in the amount withheld from your employee’s paycheck to CA State Disability Insurance Tax as “CA SDI”
Massachusetts: Indicate the employee paid portion of Family Medical Leave contributions with Description of “MAPFML”.
New Jersey: Worker contributions for UI, SDI, and Family leave should be indicated following NJ W-2 guidance.
New York: Include employee contribution of SDI as “NY SDI”. Also indicate the Employee contribution of “NY Paid Family Leave”.
Rhode Island: Include employee contribution of SDI as “RI SDI”
Washington: While WA also has a Paid Family & Medical Leave program, it does not have a state income tax (for the employee to potentially deduct this amount from). So employee paid portions of this can be added as an FYI, but the WA Paid Family & Medical W2 Leave guidance does not specify it as required.
Box 15 Employer’s
Enter the abbreviation for the state of employment. For the ID, enter in your state issued Employer ID if your state has issued you one. Otherwise, re-enter your federal EIN.
Box 16 State wages, tips, etc.
If your state has a state income tax, enter in the taxable wages the state will consider. In most cases, this is the same amount as in Box 1.
Leave this blank if your state does not have an income tax.
Box 17
Enter in the amount of state income tax withheld. Leave this blank if you did not withhold any state income tax from your employee’s paycheck.
Box 18 Local wages, tips, etc.
If your locality has local income tax, in addition to the state income tax, enter in the taxable wages the state will consider. In most cases, this is the same amount as in Box 1.
Leave this blank if your city is not subject to additional local income tax.
Box 19 Local income tax
Enter in the amount of any local income tax withheld. Leave this blank if you did not withhold any state income tax from your employee’s paycheck.
Box 20 Locality name
Enter in the locality name for local income tax, if applicable.
W-2 FAQs
What else do I need to do for tax time?
With your own tax return, you will need to include form Schedule H and remit taxes withheld and owed at that time.
For a full checklist of how to pay your nanny legally, see here. This information and more is also included in the Paycheck Nanny app for Android and the Paycheck Nanny app for iOS.
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