Babysitter Taxes? Really? What's in a word?

Posted by HomeWork Solutions on Feb 9, 2016 7:00:00 AM

Many families have a regular babysitter or nanny, or even a babysitter to help over school holidays. This extra set of hands caring for your children allows you to meet your obligations professionally and as a parent.  Do you pay your babysitter or in-home childcare provider cash, thinking this is just babysitting and never considering payroll taxes? Have you wondered if babysitter taxes even exist? They do – and if you fail to pay them and the IRS finds out, this could result in some hefty penalties or fines.

But, don’t panic right away.

If you pay your babysitter less than $2000 a year, you will be exempt. But, if your babysitter is 18 or older and you end up paying more than that amount, the IRS will consider this a household employment situation and you will need to calculate babysitter taxes into your budget.

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Topics: babysitter nanny tax

Why We Love Nanny Work Agreements (And You Should, Too!)

Posted by HomeWork Solutions on Feb 2, 2016 3:47:14 PM

Nanny work agreements are an important part of the nanny-employee relationship. As an employer, the nanny work agreement establishes an overall framework for the nanny employment arrangement, as it will establish a professional relationship from the beginning. Here are some key reasons why we love nanny work agreements, and why you should too!

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Topics: nanny work agreement

A Nanny Asks - Questions about Form W-2

Posted by HomeWork Solutions on Jan 26, 2016 7:00:00 AM

There are a lot of questions that surround taxes that families are required to pay for their nanny or senior caregiver and for most people, the process can be confusing and at times, overwhelming. Here, we answer some of the most commonly asked questions.

Q: Is there a dollar threshold at which W-2 Forms are not required?

A: Household employers are required to issue a W-2 when cash wages in the year reach $1,900 (2015), or if the household employer has withheld income or payroll taxes. When wages do not meet the threshold and taxes were not deducted, a W-2 is not required.

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Topics: W-2, nanny

How Do You Manage Trustee Risks with Private Caregivers?

Posted by HomeWork Solutions on Jan 19, 2016 7:00:00 AM

As a trustee, do you manage or issue payroll to a beneficiary’s caregiver? This type of employment situation requires that you understand and recognize the importance of legal and tax obligations that this brings to the trust as well as you as the individual trustee. If you’re the trustee, you’re automatically held to a high standard of performance and you could be held accountable for any actions that cause risk to a beneficiary. This means you may even be financially responsible for any negative consequences. So how can you best manage trustee risks when hiring private caregivers? Here are some critical issues that you’ll need to remember when it is hiring time.

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Topics: senior care

Inclement Weather Policy - Nanny Employers Plan Ahead!

Posted by HomeWork Solutions on Jan 12, 2016 7:00:00 AM

Winter weather is on its way and that means that nanny employers need to plan ahead and have an inclement weather policy in place. Traveling to work in snowy or icy conditions can be unsafe and safety should be a priority for both parties. In the event of a weather emergency, an inclement weather policy should be outlined and understood at the beginning of employment. Here are some tips on how to prepare for situations that may come up unexpectedly.

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Topics: nanny work agreement

More Families are Background Screening Senior Caregivers

Posted by HomeWork Solutions on Jan 5, 2016 7:00:00 AM

There are a lot of news stories about seniors being taken advantage of. Sometimes it is physical abuse that you hear about and other times there are reports of senior scams that drain bank accounts. Seniors everywhere are being used rather than cared for, so in order to keep your loved one from becoming a victim, quality background checks are needed for caregivers and household employers. The National Institute on Aging estimates that there are about 7 million Americans that are long-distance caregivers for their aging parents and for this reason, reputable caregivers are needed to help bridge the gap for those that cannot make it over daily to help take care of their loved ones. In addition, it’s estimated that the number of people age 65 and older will double by 2050, a phenomena often referred to as the silver tsunami. This means that more families are background screening senior caregivers

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Topics: caregiver background screening

How to Solve the Biggest Problems with Household Payroll

Posted by HomeWork Solutions on Dec 29, 2015 6:30:00 AM

No matter how detail-oriented you are, managing household payroll can be a big job with a lot of unknowns. Household payroll is especially complex and the government takes these types of taxes and payments very seriously. So, if there are obvious mistakes or they are paid incorrectly, there could be some very expensive consequences for this, including steep penalties and fees.

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Topics: household payroll

Minimum Wage Increases January 1, 2016

Posted by HomeWork Solutions on Dec 28, 2015 12:47:40 PM

In 2015 many labor groups pushed hard for increases in the minimum wage. While they were unsuccessful at the federal level, many states and municipalities have minimum wage increases scheduled for January 1, 2016. Household employees such as nannies, housekeepers, and many senior caregivers are covered by minimum wage legislation, and when there is a difference between the state and federal rates, the greater of the two applies.

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Topics: minimum wage

Elder Care After ObamaCare

Posted by HomeWork Solutions on Dec 22, 2015 7:00:00 AM

Elder_Care_After_Obamacare.pngIn one of the most polarizing decisions in recent history, the Patient Protection and the Affordable Care Act, or ObamaCare, was passed by Congress in March of 2010. This legislation was enacted to give more Americans access to affordable, quality health insurance and to reduce the growth in health care spending in the United States.

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Topics: elder care, assisted living, medicare, obamacare, senior care

10 Most Expensive Metro Areas for Child Care in the US

Posted by HomeWork Solutions on Dec 15, 2015 7:00:00 AM

Having kids can get incredibly expensive, and paying for quality childcare is one of those expenses. However, as you might expect, the cost of living varies greatly from state to state and in some cities in the United State, childcare is significantly more costly. Data that was released recently by the Economic Policy Institute looked at more than 600 metropolitan areas in the country and included in a variety of factors in the findings including transportation, food costs, childcare, and housing. The results showed that childcare is usually the most expensive line item for parents raising little ones. Here are the 10 most expensive metro areas for childcare in the United States.

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Topics: nanny wage

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