There are a lot of questions that surround taxes that families are required to pay for their nanny or senior caregiver and for most people, the process can be confusing and at times, overwhelming. Here, we answer some of the most commonly asked questions.

Q: Is there a dollar threshold at which W-2 Forms are not required?

A: Household employers are required to issue a W-2 when cash wages in the year reach $1,900 (2015), or if the household employer has withheld income or payroll taxes. When wages do not meet the threshold and taxes were not deducted, a W-2 is not required.

Winter weather is on its way and that means that nanny employers need to plan ahead and have an inclement weather policy in place. Traveling to work in snowy or icy conditions can be unsafe and safety should be a priority for both parties. In the event of a weather emergency, an inclement weather policy should be outlined and understood at the beginning of employment. Here are some tips on how to prepare for situations that may come up unexpectedly.

There are a lot of news stories about seniors being taken advantage of. Sometimes it is physical abuse that you hear about and other times there are reports of senior scams that drain bank accounts. Seniors everywhere are being used rather than cared for, so in order to keep your loved one from becoming a victim, quality background checks are needed for caregivers and household employers. The National Institute on Aging estimates that there are about 7 million Americans that are long-distance caregivers for their aging parents and for this reason, reputable caregivers are needed to help bridge the gap for those that cannot make it over daily to help take care of their loved ones. In addition, it’s estimated that the number of people age 65 and older will double by 2050, a phenomena often referred to as the silver tsunami. This means that more families are background screening senior caregivers. 

In 2015 many labor groups pushed hard for increases in the minimum wage. While they were unsuccessful at the federal level, many states and municipalities have minimum wage increases scheduled for January 1, 2016. Household employees such as nannies, housekeepers, and many senior caregivers are covered by minimum wage legislation, and when there is a difference between the state and federal rates, the greater of the two applies.

Having kids can get incredibly expensive, and paying for quality childcare is one of those expenses. However, as you might expect, the cost of living varies greatly from state to state and in some cities in the United State, childcare is significantly more costly. Data that was released recently by the Economic Policy Institute looked at more than 600 metropolitan areas in the country and included in a variety of factors in the findings including transportation, food costs, childcare, and housing. The results showed that childcare is usually the most expensive line item for parents raising little ones. Here are the 10 most expensive metro areas for childcare in the United States.

When you’re looking to hire a nanny and determining how much you want to pay, you should also factor in the cost of hiring a nanny payroll service. A nanny payroll service will make sure that you have everything you need covered in terms of taxes, payroll deductions, and benefits for your new nanny, and will be a resource to you when you have questions. With a household payroll service, you will have peace of mind that hardworking household payroll specialists are working to get things done right the first time.

Did you know that if you are a household employer that you may be entitled to a variety of tax breaks, regardless of what your nanny’s or senior caregiver's income level is? If you are paying your nanny or senior caregiver legally, there are two main tax breaks that you may be entitled to.

It's almost time to say goodbye to another year! Our experienced team of professionals at HomeWork Solutions is here to help you stay on top of the deadlines and other details that you need to have when it comes to household payroll. This year, there were a variety of important action items that took place both on a state and federal level. Here’s a quick description of important must-knows: