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I an LLC sole-proprietor working from a home-office. Can I hire a Nanny as an employee in order to offer "on-site child care"?

Forum|Forum|3 years ago
July 26, 2022
2 replies
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Further, can the dedicated area used for child care during business hours be deducted as part of the home office?

TurboTax Online

Best answer by Critter-3

Ok ... you can hire a nanny however they are NOT an employee of your company in any way UNLESS you are in the business of providing nanny services to others. The nanny is a personal employee if they work in your home and none of that home used for day care can be a deduction ... only the space usually and EXCLUSIVELY used for your Sch C business can be used for the Sch C OIH deduction form 8829.

Critter-3Answer

Ok ... you can hire a nanny however they are NOT an employee of your company in any way UNLESS you are in the business of providing nanny services to others. The nanny is a personal employee if they work in your home and none of that home used for day care can be a deduction ... only the space usually and EXCLUSIVELY used for your Sch C business can be used for the Sch C OIH deduction form 8829.

Carl11_2

Employee

"You" can hire a nanny if you want. But if your SCH C business is not "in the business" of providing day care, you can't claim it as a business expense or deduction on the SCH C at all. If the nanny is providing the care in your home, then they would probably be considered a household employee requiring you (not the business) to issue them a W-2 and do all the required withholding from their pay.

O

ocramolop

What if the person providing child care is one of my children and that child also performs other business functions for the sole proprietorship, such as office work, marketing, etc. Can all her work be wrapped into her W-2, including the child care portion?

Critter-3

No ... only the business portion can be paid thru the business account. This must be considered a separate situation and you should get an EIN for the nanny income and file a separate W-2 form.