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Once you hire a household employee, you take on a new role: household employer.
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If you’ve ever looked at a paycheck and wondered where a part of your earnings went, you’re not alone. Between Social Security, Medicare, federal income taxes, and other withholdings, payroll deductions can feel confusing at first glance.
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Hiring someone to work in your home can make life significantly easier, but it also comes with responsibilities many families don’t expect. From a performance concern to understanding household employee laws, many families find themselves searching for answers when issues arise.
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If you employ someone in your home — such as a nanny, senior caregiver, or housekeeper — you may have heard about Schedule H and wondered how it fits into your tax return.
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