The Nanny or Senior Caregiver Independent Contractor Myth

Posted by HomeWork Solutions on May 3, 2016 7:00:00 AM

Did you know that if you pay a senior caregiver or nanny directly that it’s likely that the law considers your caregiver an employee?

As an employer, you have the responsibility to understand and follow pertinent labor regulations and laws. This includes tracking hours worked each week, paying FICA and overtime, and getting insurance for workers compensation, which will help protect you and the caregiver in case an injury occurs on the job. If you don’t adhere to these laws and instead classify your employee as an independent contractor, you could be liable for misclassification. It could be an incredibly costly mistake that leads to back tax payments and other expensive penalties.

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Topics: independent contractor, 1099 v w-2

Nanny, Senior Caregiver | Employee or Independent Contractor?

Posted by HomeWork Solutions on Feb 23, 2016 7:00:00 AM

A recent Forbes article sums this reoccurring argument up nicely – the government’s massive enforcement surrounding worker classification, or misclassification, is all about money, lots and lots of money.

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Topics: 1099 v w-2, nanny independent contractor, senior caregiver independent contractor

Nanny Payroll Service Reflects on April 15th

Posted by HomeWork Solutions on Feb 19, 2015 1:30:00 PM

Every American dreads this date.  APRIL 15th!  We see images of adding machine tape, lines at the post office, and piles of tax receipts. January is the month household employers deliver W-2 forms to their nanny, housekeeper and other household employees. After a month of frantic phone calls from employers and caregivers alike pleading for tax help, I can offer the following reflections:

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Topics: nanny taxes, 1099 v w-2, nanny tax compliance, Senior Caregiver Payroll

Case Study: 1099ing the Nanny

Posted by Mary Crowe, FPC on Dec 30, 2014 8:30:00 AM
HWS' Client Care Manager, Mary Crowe, shares the story of a client who issued her nanny a 1099 form, and later found herself on the wrong side of the IRS.

Our client, Linda M. came to us when her relationship with her nanny was in crisis over taxes. Linda lives in New Jersey and she hired her nanny in the fall and was paying her in cash every week. She has an accountant to handle her income taxes, and when she hired the nanny her accountant told her that everyone treats their nanny as an independent contractor.

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Topics: nanny w-2 form, worker misclassification, 1099 v w-2

Elder Care FAQ: Employee Status and Tax Obligations

Posted by HomeWork Solutions on Apr 6, 2014 7:34:00 AM

Usually around this time of year we start getting worried phone calls from families confused by the household employee taxes or the "nanny taxes." We pulled together some more of the frequently asked questions our tax experts are getting in time for April 15th. 

Q. My domestic (elder caregiver, housekeeper, nanny) wants to be treated as a "contractor." Can I do that?

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Topics: elder care, eldercare, household employee taxes, senior care, 1099 v w-2, senior home-care workers

Tax Tidbit: Filing the Correct Tax Forms for a Household Employee

Posted by Kathleen Webb on Mar 18, 2014 7:00:00 AM

Regardless of whether your household employee is full time or part time, employers are required to pay employment taxes if the employee is paid $1900 or more per year (in 2014).

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Topics: household employee, household employer, nanny taxes, 1099 v w-2, household payroll tax, household payroll

Tax Tidbit: Household Employee Taxes ARE the Nanny Taxes

Posted by Kathleen Webb on Mar 16, 2014 7:00:00 AM

Household employee placements- including butlers, chefs, housekeepers and nannies- are on the rise, said Sarah Tilton of the Wall Street Journal in a recent online article. Accustomed to the high level of service they receive on luxury vacations and five star hotels, wealthy homeowners are increasingly staffing their residences with specially trained personnel to make their lives more comfortable.

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Topics: household employee taxes, 1099 v w-2, domestic employer legal responsibilities, nanny tax compliance

Nanny Misclassification and the 1099 Mistake

Posted by HomeWork Solutions on Jan 10, 2014 7:28:00 AM

W-2_(1)Tax season is in full swing, and Americans are preparing to file their annual income tax returns. If you are a household employer - you employ a nanny, housekeeper or senior caregiver - you will find conflicting advice on how to handle the "nanny taxes."

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Topics: household employee, worker misclassification, independent contractor, nanny tax, nanny taxes, 1099 v w-2

Do you find the Nanny Taxes confusing?

Posted by Vanessa Vidal, FPC on Nov 9, 2013 11:00:00 PM

Hiring a nanny or a housekeeper to help you out at home, a personal assistant to keep you organized, a senior caregiver to help you out with your aging parents, a gardener, cook or any other household worker to whom you pay directly (more than $1800 in calendar year 2013, $1900 in calendar year 2014) and you control the way the work is done and how, makes you a household employer!

According to the IRS's Publication 926 household employers who pay a worker more than $1800 cash wages in a calendar year, are required to file payroll taxes. 

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Topics: worker misclassification independent contractor, 1099 v w-2

Household Workers: Employee vs. Independent Contractor

Posted by Vanessa Vidal, FPC on Oct 22, 2013 4:43:00 PM

HWS client care specialists field inquiries about worker classification - whether a household worker is an employee or an independent contractor - all the time.  Families call questioning whether they can treat their household employee as an independent contractor, provide them a 1099 Form instead of a W-2, and avoid the entire issue of payroll taxes.

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Topics: worker misclassification independent contractor, 1099 v w-2, nanny independent contractor, household independent contractor

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