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Annual Bonus for your Nanny or Senior Caregiver?

Posted by HomeWork Solutions on Nov 14, 2017 4:33:00 PM

The end of the year is quickly approaching. Traditionally at this time of year you consider recognition for the  people in your life who provide you services and traditionally receive a holiday bonus. You

are thinking about that, aren't you? In addition to the cleaning company team and your hairdresser, there's probably nobody more deserving than family employees such as your nanny or senior care worker. After all, they're the unsung heros of your household.
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Topics: nanny bonus

Should You Give Your Nanny a Year End Bonus?

Posted by HomeWork Solutions on Nov 8, 2016 8:00:00 AM

Your nanny has worked hard for you all year and you may be wondering if a year-end bonus is warranted. You ask around the office and the answers are all over the place. While a clear majority of nanny employers provide additional compensation or paid time off at the end of the year, many families like you are uncertain about what is customary. 

The annual year end bonues a great opportunity to show your nanny that you appreciate everything that she has done to go above and beyond her regular duties. While an end of year bonus is not required, to your nanny a gift of recognition is always appreciated.

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Topics: nanny bonus

Should You Provide a Year-End Bonus to Your Nanny?

Posted by HomeWork Solutions on Nov 10, 2015 6:30:00 AM

The end of the year is coming and the holidays are approaching. For many employers, this is a perfect opportunity to provide a year-end bonus – incentive pay that goes above and beyond the regularly provided salary. Has your nanny done a great job for your family this year? You may be wondering if you should provide a year-end bonus to your nanny for a job well done. While a bonus is never required, it is very common that families provide their nanny and/or housekeeper a end of year bonus. It certainly is a gift that would be appreciated. There are several creative ways that you can show your appreciation to your employee.

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Topics: nanny bonus

Holiday Tipping: Ideas for Employers of Nannies and Caregivers

Posted by Joe Frisbee on Nov 4, 2014 5:53:00 PM

"Excellence is not a skill, it is an attitude." ~ Ralph Marston 

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Topics: nanny bonus, nanny background screening

Ways to show appreciation - HomeWork Solutions' Advice

Posted by Vanessa Vidal, FPC on Dec 12, 2013 11:57:00 AM
Appreciation is a wonderful thing. It makes what is excellent in others belong to us as well- Voltaire

We all have our own unique ways of showing appreciation for the people around us that make our lives easier or brighten our day in some other way ...  Whether it is your employee, nanny, spouse, boss or even a kind stranger, make sure you show how valuable their positive impact in your life is for you.  If someone challenged you to get out of your comfort zone and meet a goal, especially during the holiday season, remember to appreciate what they have done for you. Get creative with the ways you say “Thank you!”

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Topics: nanny bonus, nanny, holiday

Nanny Holiday Appreciation … Bonus? Paid Time Off?

Posted by Vanessa Vidal, FPC on Dec 4, 2013 4:34:00 PM

Timeless holiday songs are once again playing on the radio, that festive spirit can be felt in the air and year end celebratory planning can be found everywhere … This is one of my favorite seasons of all.  It is that special time of year when we take the time to appreciate the wonderful people in our lives, and take a moment to show our appreciation to those special people that make our everyday lives better.  We all start to feel that holiday spirit this time of year!

Many families incorporate this spirit into their household employment relationships as well.  If you have a nanny, senior caregiver or other household employee, now is the time to consider how you might demonstrate your appreciation to your employee ...

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Topics: nanny paid time off, nanny bonus

End of Year Nanny Bonus?

Posted by Kathy Webb on Nov 27, 2012 8:17:00 AM

In the household staffing arena, it is very common for families to express their appreciation for valued service with an end of year monetary bonus. Household employers often have the following questions:

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Topics: nanny payroll, nanny bonus, nanny wage

Nanny Holiday or Year End Bonus

Posted by Kathy Webb on Nov 19, 2012 6:33:00 PM
Q. Does my nanny expect a bonus? If so, how big should the bonus be?

A. Holiday or year end bonuses are OPTIONAL - and are reportedly paid by about half of our clients. So, where as your nanny might appreciate a bonus, unless it has been your practice to give one in the past she is not likely to EXPECT it. Bonus amounts are typically one, sometimes two weeks pay. For newer nannies, most families fall back on the one day for every month of employment, up to a week. So the nanny who started in October might get 3 days pay as her bonus.

Many families have employment contracts that obligate a bonus at the employment anniversary date - a retention bonus. When these arrangements are in place, there is often either no holiday bonus or a very modest one.

Q. My husband and I have not had raises in two years, and we went ahead and gave our nanny a salary increase on her employment anniversary date. We would like to give a bonus, but it cannot be as generous as last year. Is this a problem?

A. Your nanny hears the news and knows that economic conditions are not fabulous too. Most employees, not simply nannies, have adjusted their expectations downward, and most are happy to get any bonus. I recommend that you acknowledge this to your nanny. Something to the effect "Times are rough, and I wish this bonus could be as generous as last year's." Make sure you use the words to express your gratitude for the services your nanny provides; most professional nannies would agree that a financial bonus is nice, but the words sincerely offered are always remembered.

Q. Are nanny holiday bonuses and gifts taxable?

A. Yes. In the eyes of the IRS, there is no such thing as a GIFT between and employer and an employee. Anything of value given by an employer to an employee is considered compensation, subject to wage reporting and employment and income taxes

The only way to skirt the issues of reporting the gift or bonus on the nanny's W-2 is to give her something with a 'de minimis' value - something so small that it is administratively impractical to perform a valuation and include it in compensation. This absolutely rules out CASH and dollar-value gift cards, but might allow other small expressions of gratitude such as a framed photo of the nanny with her charges.

The IRS does not define 'de minimis' by any specific value. A business gift is considered 'de minimis' if the value is less than $25. Many employers use the same measurement - hence the holiday ham or turkey. Gift cards with a dollar value or 'cash equivalent', however, even under $25, would be considered compensation.

Any cash you give to an employee at any time - whether it's a salary, bonus, or holiday gift - must be added to the employee's W-2 income. As a cash equivalent, a $50 gift certificate or gift card is $50 of taxable income.
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Topics: nanny bonus

National Nanny Recognition Week

Posted by Kathy Webb on Sep 6, 2012 5:53:00 PM

Through the year, there are some special days, created to remind us of the importance of those special people that make a difference in our lives.  We are now approaching the National Nanny Recognition Week (September 23rd through 29th).

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Topics: nanny employment practices, nanny, nanny bonus

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