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Your Guide to Understanding Household Employer Paperwork in 2024

Posted by HomeWork Solutions on 6/18/24 3:59 PM

If you hire individuals to work in your home, such as nannies, senior caregivers, or housecleaners, you are likely a household employer in the eyes of federal labor and tax authorities. This employment relationship means you're responsible for filing the proper taxes and providing the necessary paperwork to your employees if you pay them over $2,700 for the year (updated for 2024).

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Topics: household employer, nanny tax, domestic worker, caregiver tax, schedule H, household employment, homework solutions

Why CPAs Should Engage Clients on Caregiving Needs

Posted by HomeWork Solutions on 6/13/24 7:07 PM

As the Baby Boomer generation ages, a growing number of them face decisions around long-term care needs for themselves or their parents. This presents an opportunity for CPAs to have important family wealth-planning conversations. By proactively discussing potential home caregiver requirements, you can position your firm as a trusted advisor while identifying clients who may need support transferring assets or updating estate plans.

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Topics: senior caregivers, accountants, CPA

Paid 'Under the Table' - Can I Still Receive Social Security?

Posted by HomeWork Solutions on 6/11/24 9:45 AM

If you've worked as a household employee and received your pay 'under the table,' you might wonder about your eligibility for Social Security benefits when you retire. The answer is not straightforward and depends significantly on your marital status, work history, and how your income was reported.

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Topics: eldercare, nanny retirement, W-2, nanny, caregiver, domestic worker, childcare

Managing Household Payroll: A CPA’s Guide to Navigating Your Clients’ Nanny Taxes

Posted by HomeWork Solutions on 6/6/24 1:56 PM

For CPAs, now is a great time of year to ensure clients with household employees—like nannies—are doing things the right way to make tax time easier for them and for you. It’s ideal if these clients have diligently tracked hours, issued accurate paychecks with the appropriate Social Security and Medicare taxes withheld, and kept up with quarterly unemployment tax filings and W-2 distribution. Unfortunately, this scenario is more the exception than the rule. Many employers of household employees are either not fully aware of their responsibilities or find themselves too pressed for time to manage them effectively, often creating additional workload for their CPAs.

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Topics: household employee, household payroll, CPA

Labor Rules Roundup: June, 2024

Posted by HomeWork Solutions on 6/5/24 8:45 AM

May was an extremely busy month for labor rules across the U.S. Read on for our latest roundup of the Department of Labor's final rule, its ramifications across industries, and expert opinions on how all these topics impact your practice and your clients.

DOL Finalizes Fiduciary Investment Advice Regulation | Practical Law The Journal | Reuters
Reuters

The Department of Labor (DOL) has finalized a regulation on the definition of fiduciary investment advice under the Employee Retirement Income ... 

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Topics: FLSA, independent contractor, accountants, CPA

Unintended Consequences of Off-the-Books Payments: A Client's Story

Posted by HomeWork Solutions on 6/4/24 12:52 PM

When Mike and Joyce welcomed Mike’s mother into their home following the loss of her husband, they also hired a part-time caregiver to assist with some of her daily needs. Opting for simplicity in a challenging time and not realizing there were employment obligations, they agreed to a $500 weekly payment off the books—a decision that seemed mutually beneficial at the outset. The caregiver proved invaluable over the nearly three years she worked with them, parting ways amicably when Mike’s mother transitioned to a nursing facility.

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Topics: aging in place, eldercare, Hiring Elder care, hiring care for seniors, Senior Caregiver Payroll

Nanny Shares- What You Need to Know to Be Successful

Posted by HomeWork Solutions on 5/23/24 10:07 AM

At HomeWork Solutions, we understand the unique needs and benefits of a nanny-share arrangement. It's a fantastic way for families to access dependable childcare cost-effectively. By sharing a nanny, the children enjoy companionship, and the families involved benefit from a more affordable childcare solution. The nanny, in turn, often receives a higher rate than they would with a single family, creating a win-win scenario for all as long as communication and parameters are clearly established.

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Topics: nanny share, nanny savings, hiring a nanny, childcare, employment compliance

How Paid Holidays Can Impact Overtime Pay

Posted by HomeWork Solutions on 5/14/24 12:46 PM

Good communication that establishes a mutual understanding is necessary when hiring a nanny, senior caregiver, or other household employee to work in your home. When it comes to defining benefits such as paid holidays, the details matter to ensure there is no misunderstanding about how these holidays will be compensated. If the employee often works more than 40 hours per week, defining this benefit and clarifying expectations becomes even more critical. Let’s examine how labor laws determine when overtime is due and how guaranteed pay alters the picture.

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Topics: overtime rules, household employee, household employer, hiring a nanny, time tracking, nanny hourly wage, domestic employer legal responsibilities, nanny overtime, Hiring Elder care, Senior Caregiver Payroll

The Six-Factor Worker Classification Shakeup: What the DOL's New Rule Means for Your Clients

Posted by HomeWork Solutions on 5/8/24 6:07 PM

On January 10, 2024, the U.S. Department of Labor (DOL) issued a final rule revising its guidance on how to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). Effective March 11, 2024, this new rule rescinds the prior independent contractor rule from 2021. 

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Topics: CPA

Let’s Give it a Try – What You Need to Know About Trial Periods

Posted by HomeWork Solutions on 5/8/24 1:07 PM

Introducing a caregiver into your home is a significant step. That's why many families and caregivers agree to a trial period at the outset of their working relationship. This period, which can last from a few hours to several days, allows both parties to get to know each other better and decide if the arrangement will work for the long term. However, it’s important to remember that even during this initial stage, a caregiver is considered an employee, and all labor laws apply from the moment they step into your home.

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Topics: hiring a nanny, interview a nanny, Hiring Elder care, interviewing elder care applicants, temporary household worker, employment compliance

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