How To Avoid Your Very Own Nannygate

Ryan Flickinger was barely three months old last fall when his parents sat staring cross-eyed at Internal Revenue Service Publication 926, a 12-page recipe for parental colic otherwise known as Household Employer's Tax Guide. With mom Margaret returning to her business-development post at a law firm, she and her husband, Brad, had to figure out how to pay taxes on the nanny the McLean (Va.) family would soon need. "We flipped through the book and said, `You know what? Someone else has already figured this out,"' says Brad, a commercial real estate manager.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.