All employers in the U.S. have to pay unemployment tax. There are two versions – Federal and State. Federal unemployment tax (FUTA) is charged at a rate of 6% on the first $7000 in wages paid to an employee, in most cases though that rate is decreased to 0.6% (explained more below). State unemployment tax (SUTA) is handled in a similar way but each state controls their own rate and wage threshold.

Household employees provide a valuable service to homes around the country, but when it comes to paying the person and adhering to proper tax laws, it can get confusing. Your role as a CPA or financial advisor is valuable, as you can explain some of these laws and answer questions on some of the basics. It is important to note that nannies, senior care professionals, private housekeepers, or personal assistants are not independent contractors and cannot be paid as such. Household employees are exactly that: employees.

It is important to note that nannies, senior care professionals, private housekeepers, or personal assistants are not independent contractors and cannot be paid as such.

According to the IRS, thousands of people have had money and personal information stolen through tax-related scams. Scammers are getting more refined, making it harder than ever to separate real correspondence from fake. Here are two of the more popular tax-related scams the IRS has seen this year.

As much as we would like to be, it’s a fact that human beings simply aren’t perfect. Even Mary Poppins, the famous nanny that saves the day admits that she was only “practically” perfect. When it comes to search for the right nanny to work in your home, we understand that you’re looking for someone as close to perfect as possible. Every agency has come across a great candidate that has a hiccup in work history. That means when you’re learning more about that person and what they have to offer, the agency is left to decide if that one gap will spoil the whole peach. The good news is, it doesn’t have to!

Even Mary Poppins admits that she was only “practically” perfect.

Nanny Taxes are a very narrow but complex piece of the tax code; as such they are easy to miss and can cause considerable headaches to fix. The following case study is from a real client. The names have been changed but the rest is true.  Read on for an example of what can go wrong, even for the best of us.

The U.S. Department of Labor has updated the salary threshold for executive, administrative, and professional employees. The threshold was last set in 2004 and this update takes into account inflation and wage growth since that time. There has also been an update to the total annual compensation level for “highly compensated employees.”

Jury duty: some people dread getting called, others welcome the chance to do their civic duty and experience a bit of change of pace from their regular workday. However, when your household employee gets called to jury duty, it can be a strain on your home, and you may need to adjust schedules in order to cover your employee’s absence. When it comes to payment, you might be wondering if they need to be paid while they are on jury duty. Here are the details you should know.

Here are some of the more popular tax deadlines for corporate and other employers in the fourth quarter of 2019. This list is not exhaustive so there may be additional requirements that apply to you.

It is a common, but ill advised, practice in the household employment field to negotiate wages on a take home pay basis. We have illustrated many times how parents can get themselves into budgetary hot water when they agree to a take home wage without first doing the math to figure out what the out of pocket costs are too. Similarly, a nanny or senior caregiver who simply negotiates her wage on a take home pay basis often works against her best interest.

Modern businesses must have a good website to remain competitive, even if they aren’t an eCommerce business. Developing and maintaining a site though isn’t always cheap and easy. As these costs can mount quickly, business owners often want to know how to treat those costs when it comes to taxes. This post gives you a starting point for proper categorization of website development costs.