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NannyLedger

AI Use Disclosure

Last updated: 2026-02-10Version 1.0

1. AI Features in NannyLedger

Asterium LLC, doing business as NannyLedger ("NannyLedger," "we," "us," or "our"), uses artificial intelligence (AI) to enhance specific features within the service. This disclosure explains what AI we use, how it works, what data it accesses, and its limitations. We believe in transparency about AI use, especially in a service that handles sensitive financial and tax information.

2. AI Tax Assistant

NannyLedger includes an AI-powered Tax Assistant that helps household employers understand their payroll tax obligations. The assistant can answer questions about federal and state withholding requirements, explain W-4 and W-2 forms, clarify Schedule H filing procedures, and provide general guidance on household employer tax responsibilities.

AI Provider

The Tax Assistant is powered by Anthropic's Claude language model. Anthropic is an AI safety company based in San Francisco, California. We use the Claude Haiku model for fast, cost-effective responses.

Data Handling

When you use the Tax Assistant, your question is sent to Anthropic's API along with a system prompt that provides context about household employment taxes. We do NOT send your personal information (name, SSN, EIN, bank accounts, or employee data) to the AI. The assistant operates on general tax knowledge, not your specific payroll data. Anthropic does not use API inputs or outputs for training their models, as stated in their data usage policy.

Limitations

The AI Tax Assistant provides general informational guidance only. It may produce incorrect, outdated, or incomplete answers. Tax laws change frequently, and the AI's training data has a knowledge cutoff date. The assistant cannot access real-time IRS or state tax agency updates. You should always verify the assistant's responses against official IRS publications and state tax agency guidance, or consult a qualified tax professional for your specific situation.

IRS Circular 230 Disclaimer

In accordance with IRS Circular 230, any tax-related information provided by the AI Tax Assistant is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. The AI Tax Assistant does not provide tax advice. It provides general information about tax topics related to household employment.

3. AI Is Not a Human

Responses from the AI Tax Assistant are generated by a machine learning model, not a human tax advisor, CPA, enrolled agent, or attorney. The assistant is clearly labeled as "AI Tax Assistant" in the interface, and responses include a disclaimer that they are AI-generated and should not be relied upon as professional tax advice. If you need professional tax advice, please consult a qualified tax professional.

4. Data Retention

Conversations with the AI Tax Assistant are stored in your account for your reference. You can view your chat history on the AI Assistant page. Chat history is retained as long as your account is active and is deleted when your account is deleted. Anthropic retains API logs for up to 30 days for abuse monitoring, after which they are deleted. Anthropic does not store conversation content beyond this operational window.

5. Your Choices

Use of the AI Tax Assistant is entirely optional. You can use NannyLedger's payroll processing features without ever interacting with the AI assistant. If you prefer not to use AI features, simply do not navigate to the AI Assistant page. There is no penalty or reduction in service for choosing not to use the AI features.

6. Changes to AI Features

We may update the AI model, provider, or capabilities of the Tax Assistant over time. If we make material changes to how AI processes your data (for example, switching providers or expanding the data shared with the AI), we will update this disclosure and notify you via email or a prominent notice on our website at least 30 days before the change takes effect.

7. Contact Us

If you have questions about our use of AI, contact us at privacy@nannyledger.com, by mail at Asterium LLC, Katy, TX 77450, or through our Contact Support page.

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