To calculate the nanny's salary and withhold taxes
C.
To find potential nanny candidates
D.
To provide documentation for the nanny's performance evaluation
2.
True or False: Nannies are considered independent contractors and are responsible for paying their own taxes.
A.
True
B.
False
3.
Which of the following taxes are typically withheld from a nanny's paycheck?
A.
Income tax
B.
Social Security tax
C.
Medicare tax
D.
All of the above
4.
What is the current federal minimum wage for nannies in the United States?
A.
$7.25 per hour
B.
$8.00 per hour
C.
$10.00 per hour
D.
$15.00 per hour
5.
True or False: It is not necessary to report a nanny's wages to the IRS if they earn less than $2,600 per year.
A.
True
B.
False
6.
When should you provide a W-2 form to your nanny?
A.
By January 31st of the following year
B.
By April 15th of the following year
C.
By July 4th of the following year
D.
By October 31st of the following year
7.
What is the purpose of Form W-4 for a nanny?
A.
To report the nanny's wages to the IRS
B.
To calculate the amount of federal income tax to withhold from the nanny's paycheck
C.
To track the nanny's hours worked
D.
To provide information about the nanny's employment history
8.
True or False: Nannies are entitled to overtime pay for hours worked over 40 in a week.
A.
True
B.
False
9.
Which of the following can be considered as additional compensation for a nanny?
Answer: d) All of the above (Paid time off, health insurance, retirement benefits).
A.
Paid time off (vacation and sick days)
B.
Health insurance
C.
Retirement benefits
D.
All of the above
10.
True or False: It is important to keep accurate records of a nanny's wages, hours worked, and taxes withheld for at least four years.
