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2011 State Round-up: Changes Impact Nanny (Household) Employers

Posted by Kathy Webb on Jan 3, 2012 8:04:00 AM

Many states enacted legislation and regulations in 2011 that impact household employers. If you employ a nanny, housekeeper, house manager, home health aide, or any household staff, please stay informed.

California Household Employers

The CA Wage Theft Prevention Act imposes new notification and recordkeeping requirements on household employers with staff in California. Please see our prior blog posting for details on the California Wage Theft Protection Act. Household employers who issue their own payroll may download a CA Employee Pay Rate Notice from the 4nannytaxes.com website.

Additionally, California is cracking down on employers who misclassify employees as independent contractors. Under Federal and California law, almost all individuals who provide services (childcare, housekeeping, household management, elder care) in a private home and who are paid by the household are employees, not independent contractors.

Illinois Household Employers

Illinois household employers who withhold state income taxes from their household employees will now report and pay these taxes as part of the employer's Illinois state income tax return. Any IL state income taxes that you deducted (withheld) from your household employees in 2011 will be reported and paid with your personal state income tax return.

New York Household Employers

The New York Wage Theft Protection Act imposes new notification and recordkeeping requirements on household employers with staff in New York. Please see our prior blog posting for details on the New York Wage Theft Protection Act. Household employers who issue their own payroll may download an NY Employee Pay Rate Notice from the 4nannytaxes.com website.

Please note these requirements are in addition to 2010's New York Domestic Workers' Bill of Rights.

Pennsylvania Household Employers

Pennsylvania's Act 32 imposes mandatory local income tax withholding on most Pennsylvania employers. Please note, Act 32 does not apply to employers of nannies, housekeepers, and other household employees. PA Act 32 defines "employees" as those subject to mandatory Federal Income Tax withholding. Household employees are not subject to mandatory Federal Income Tax withholding. More information is available online from the state, particularly WITHHOLDING  § 151.11. Registration of employers.

More to come...

If you employ a household worker, or provide staffing referral services for household and estate employment, please consider subscribing to this blog. There are numerous pending regulatory and legislative actions that will impact many household employers. Stay informed!

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Topics: worker misclassification independent contractor, domestic employer legal responsibilities, california household employment, new york household employment

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