Aiming_4_55
Thinks s/he gets paid by the post
My neighbor hit me up with a question that I wasn't sure about, so I figured I would pose it here since it is more 401k based.
He's been interviewing new nannies for the summer. He normally treats them/pays them as a W-2 employee. He pays the employer taxes, FICA, etc. then he also deducts the employee taxes, etc., then nanny gets a net check for the balance.
He never thought about 401k for previous nannies until a potential nanny for this summer. She wants to put all her pay into a 401k until she hits 17k, then receives a paycheck.
Is this possible? Does he deposit it into he Vanguard individual 401k on her behalf and just pay employer taxes. Then after 17k, then nanny's gross wages gets hit for taxes, then nanny gets net pay?
I'm not sure about the process as we never had a nanny. Any suggestions?
He's been interviewing new nannies for the summer. He normally treats them/pays them as a W-2 employee. He pays the employer taxes, FICA, etc. then he also deducts the employee taxes, etc., then nanny gets a net check for the balance.
He never thought about 401k for previous nannies until a potential nanny for this summer. She wants to put all her pay into a 401k until she hits 17k, then receives a paycheck.
Is this possible? Does he deposit it into he Vanguard individual 401k on her behalf and just pay employer taxes. Then after 17k, then nanny's gross wages gets hit for taxes, then nanny gets net pay?
I'm not sure about the process as we never had a nanny. Any suggestions?
