3 Little Known Reasons Why Paying Nanny Taxes Pays Off In the Long Run

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

Despite the best efforts of Congress, the number of families that that fail to pay their nanny taxes each year is estimated to be 1.8 million. Aside from the fact that these families technically commit perjury on their family tax returns every year, they also deny their household employee (nanny, housekeeper, senior care nurse, etc.) of retirement and unemployment benefits. As if these weren’t reason enough, here is a list of five more important reasons why you should pay your nanny taxes (and some of them might surprise you!).

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Topics: nanny taxes, household payroll tax

How Do I Pay Nanny Taxes for my Housekeeper?

Posted by Mary Crowe, FPC on Nov 25, 2014 5:47:00 PM

At Thanksgiving last year, The Crawford Family got together as so many families do on this day to share a traditional meal, spend time together and talk about where they are and where they want to go.

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Topics: housekeeper, household payroll tax

Nanny Tax Compliance - Do You Have the Time?

Posted by HomeWork Solutions on Aug 26, 2014 6:20:00 PM

HWS has been providing Nanny Tax compliance services since 1993. Did you know, in a recent client survey, the biggest motivation for employers in outsourcing nanny tax compliance is the time saved?

How much time an individual would spend on their nanny taxes will of course vary between individuals. The IRS estimates that record-keeping, keeping familiar with the law, and tax return completion can run 60 hours per year. Record-keeping accounts for the lions share of the time, an activity that needs to be done every payroll period.

I was chatting with a client today. This gentleman has used our services for many years, and his household circumstances are changing. In the course of the conversation, I asked him what factors caused him to continue using our services year after year. He answered without hesitation "The time savings!" He went on to state that he actually spends only about one hour a year on his nanny taxes - primarily in collecting his information and responding to our quarterly requests for wage reports. (This client is a NaniTax Plus subscriber.) He was certain that he had never filed a tax return on time before hiring HomeWork Solutions, and that the savings in late fees alone was more than our fee. I suspect some exaggeration, but not much!

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Topics: nanny payroll, nanny tax, household payroll tax

7 Reasons Why You Should Be Paying Your "Nanny Taxes"

Posted by Kathleen Webb on Apr 2, 2014 9:30:00 AM

Hiring a nanny to care for children, or a caregiver for an elderly family member can be very expensive. These employees often work long hours and your need for their services is generally perpetual. The high cost of employing household workers often makes it tempting for families not to report paid wages, since reporting carries additional financial requirements related to unemployment insurance and other benefits. However, the risks to families who do not pay their domestic employees "on the books" are considerable.

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Topics: household employee taxes, household employee, household employer, household payroll tax, workers compensation household employees

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

Aging In Place: A Forbes Report on Senior Home Care

Posted by Vanessa Vidal, FPC on Mar 6, 2014 9:30:00 AM
The Department of Labor extended minimum wage and overtime rules to most home care workers who aid the elderly, and the media is running to provide perspective on caring for aging Americans.  The new rules, which go into effect Jan. 1, 2015, change how the companionship exemption to minimum wage and overtime under the Fair Labor Standards Act works.  Ashlea Ebeling of Forbes recently published a comprehensive article on this matter called, “Hiring Help For Aging Parents? Read This First. If you’re fortunate enough to have parents living into their golden years, there will inevitably come a time when you notice that everyday tasks become everyday obstacles, and getting reliable, affordable and caring help becomes the holy grail. 
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Topics: elder care, senior caregivers, overtime rules, household payroll tax, hiring care for seniors

2014 Nanny Payroll Tax Calculator Fully Updated

Posted by Mary Crowe, FPC on Feb 18, 2014 4:12:00 PM

The Internal Revenue Service issued new 2014 income tax withholding schedules and they are fully integrated with our online tax calculator now. We are fielding a lot of inquiries about new paycheck amounts and will try to address the common questions here:

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Topics: nanny, nanny tax, nanny taxes, household payroll tax

State Overtime Rules for Senior Care Workers

Posted by Vanessa Vidal, FPC on Oct 25, 2013 12:41:00 PM

Today's retired seniors by an overwhelming 9:1 ration fully expect to "age in place," staying in their private homes as long as they can and resisting moves to institutionalized settings. Increasingly these seniors private hire senior caregivers who help with mobility challenges, transportation and general household activities as a way to stay in their homes. When you hire a senior care worker directly, you become an employer.

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Topics: aging in place, household payroll tax, Hiring Elder care, hiring care for seniors

The "Nanny Taxes" Explained by HomeWork Solutions

Posted by HomeWork Solutions on Sep 19, 2013 3:12:00 PM

Our demanding careers and busy lives sometimes leads us to hire someone to help us out around the house.  If you have hired a nanny, housekeeper, elder caregiver, personal assistant, or any other person to provide services in your home you might become a household employer.  What does it mean?

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Topics: nanny tax, household payroll tax, nanny tax compliance

Back to School Transitions: Nanny to Nanny/House Manager

Posted by Vanessa Vidal, FPC on Aug 13, 2013 6:00:00 PM

Summer has come to an end.  Great memories.  Lots of fun, friends, playdates, swimming pool, beach vacation, etc …

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Topics: housekeeper, cleaning lady, household payroll tax

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