For many working parents, finding a hired caregiver/nanny that they trust to be with their children during the workday is extremely important. It may be convenient to pay your nanny under the table, but not only is this illegal, but it can be incredibly costly if you get caught. If you do not pay nanny taxes, there are heft fines and penalties, sometimes ranging upwards of $25,000.

Many families find this both complicated and time consuming. Prefering to dedicate this time to their family, they outsource the nanny payroll to a specialty nanny payroll service like HomeWork Solutions.  

If you’re determined to figure out how to pay the nanny taxes yourself, here are the steps on how to pay your nanny legally.

When it comes to performance reviews, employers are looking for efficient and effective strategies that allow for two-way conversation, feedback, and the ability to set goals while raising morale. Traditional performance reviews have a history of being unhelpful which in turn can lower employee morale, forcing employers to readjust how they review their employee’s performance. If you’re looking for ways to formally evaluate your senior caregiver or your nanny, here are some new strategies that can improve communication and bolster your employee’s confidence and productivity at the same time.

As employers, we’re required to provide fair compensation to our nanny and that means either providing a solid hourly, weekly, or monthly rate. Many families feel that paying a flat rate is the simplest and most efficient way to do things; however by law a nanny is an hourly employee and entitled to pay for all hours worked at the hourly rate, and may be entitled to overtime. Because the Fair Labor Standards Act specifies that household workers are to be paid hourly, improperly wording your compensation offer to the nanny can put you at risk to unpaid wage and unpaid overtime claims.

Life with a senior citizen can be unpredictable at times and for this reason, employers need to have plans in place in the event that an emergency happens. Senior citizens are some of the most vulnerable victims when weather disasters happen and they often live with health issues that require close monitoring, so having an emergency preparedness plan in place should be top priority. Here are some tips on how to prepare for emergency situations that can happen unexpectedly.

As an employer, writing a nanny contract is a very important step in the employment process. Even though it’s not legally required to have a written contract with your nanny, it can be a very helpful thing to have in order to prevent misunderstandings and set ground rules from the very beginning. A contract can also protect both parties in problems arise, because you can refer to it in order to resolve certain issues.

Starting in-home care for your loved one is a big decision. It requires careful planning, a close look at the budget, and significant research on what agencies and caretakers are available. Selecting the type of agency that’s right for you and your loved one is one of the biggest choices you will make and it can be overwhelming at first. Here are some helpful tips that can help make things a little bit easier.

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!).