For immediate release:

NannyTax, Inc. Clarifies New York Tax Reporting Rules for Domestic Employers

Federal tax laws require that if you pay a household employee $1,300 or more during 2002, you must report and pay social security and Medicare taxes on that employee's 2002 wages.

New York State laws follow (but not exactly) the federal rules.

If you pay cash wages totaling $500 or more in a calendar quarter to persons employed in personal or domestic services in your home, you are required to pay New York State unemployment insurance taxes.

Every employer liable for New York State unemployment insurance contributions must also file employee wage reporting information each calendar quarter.

For further information on tax reporting, visit our website at: www.nannytax.com or contact

Mr. Alan L. Goldberg, President

NannyTax, Inc.

(212) 867-1776

at payrolltax@aol.com

For additional information about Federal tax rules and to download IRS Publication 926 click here.

For additional information about New York State tax rules and to download New York State Publication 27 click here.

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