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FSA childcare with nanny from care.com?

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  • deeppizza
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    We found our nanny off of care.com 2 years ago, and have been reimbursed the $5K we put in annually through our employer's FSA/dependent care spending account.  However, we use myhomepay.com for her payroll management and tax filing.  It costs extra, but I honestly don't have the time to deal with the complexity of payroll payments, appropriate tax withholding, prepare and file federal/state tax returns, paystubs, etc.  I know that a lot of people pay their nannies "under the table", but our concern was that our nanny is pretty young, and this is her full time job - if she were to leave and list us as her employer for the last couple of years at a new job, they could request tax returns and therefore find out that she (and us) weren't paying taxes on her earnings.

    I always just print off the paystubs and submit them along with the FSA reimbursement form at the end of the year, and they send us a check.  Not sure what type of documentation you may need to get reimbursement if you're paying her with checks (maybe copies of cashed/deposited checks?).

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  • Karen
    started a topic FSA childcare with nanny from care.com?

    FSA childcare with nanny from care.com?

    We just had our first baby and will be returning to work in early 2017. We just found a great nanny off of care.com. We will be paying her via check on a weekly/monthly basis depending upon how many hours we use her for.

    I'm just curious, am I able to use the flexible spending account for childcare for something like this? I know we could if we used a formal daycare but I wasn't sure if that was the case when we hire a "private" nanny. And if it is possible, how do I do this if I'm paying the nanny via check. Is there a best way to reimburse myself? I'm just unfamiliar with this whole area but know there are potential for big savings and would appreciate some guidance.
    Thanks!
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