The IRS is increasing its focus on improperly classified domestic workers, including those hired to as senior home care professionals.
An adult 18 years of age or older who works in your private home and to whom you pay more than $1900 in cash wages (as of 2014) per year is subject to payroll tax obligations. Distinguishing between an independent contractor and an employee is crucial to remaining in compliance with IRS regulations.
Topics: worker misclassification, worker misclassification independent contractor, 1099 v w-2, household independent contractor, senior home care, senior home-care workers
(1st in a 3 part series)
Topics: nanny employment termination
Household employers have legitimate needs to collect and maintain their household employee’s confidential data. All employers, and their agents, are legally responsible to protect this information and prevent its access by unauthorized individuals.
Topics: household employee background check, caregiver background screening, nanny job interview, nanny background screening
Efforts at the state level to write and pass legislation to increase the legal rights and protections of domestic service workers - nannies, elder caregivers, housekeepers and others - have increased dramatically in recent months.
Topics: domestic workers bill of rights
Aging adults increasingly want to remain independent and age in their own home. Grandma or grandpa are really happy living at home and don't want to move out. Their family and loved ones worry, however, because they are not able to completely take care of themselves on their own. It is time to objectively assess the senior's abilities and limitations, and to develop a future care plan that helps them to safely age in place.
Topics: elder care, senior caregivers, companionship services
Many families that hire a senior or elder caregiver to care for a loved one want to document the arrangement so that all parties - the senior caregiver, the supervising family member, other family members and the senior receiving the care - all understand the terms and scope of the employment agreement. This is a best practice at all times! You will want this document to restate the terms of employment, including hours and wages, and to memoralize the items you originally agreed upon with the caregiver. So what do you need to include in this senior caregiver work agreement?
Topics: elder care, senior caregivers, companionship services
Direct hiring of senior caregivers by families continues to increase, and families have questions about minimum wage, overtime and whether to pay the elder caregiver when they are sleeping. US News and World Report recently noted that "by a 9-to-1 ratio, people prefer to stay in their homes as they get older rather than moving into an institution." They often become household employers as they hire individual home-care workers to help them age in place.
Topics: elder care, senior caregivers, companionship services, companionship exemption, senior home-care workers
HomeWork Solutions has experienced a dramatic increase in the volume of calls from employers of undocumented household workers in the past weeks. The extensive media coverage of Washington’s renewed, bipartisan commitment to implement comprehensive immigration reform - and create a path to citizenship for undocumented workers - raises questions for families employing undocumented domestic service workers.
The IRS reports that audits of tax returns with income over $200,000 increased by 13% in 2012 over the prior year. The Wall Street Journal's Market Watch recently published advice on 5 steps to take to avoid an IRS audit on your Federal income tax return.
Topics: babysitter nanny tax, nanny payroll tax, nanny taxes, payroll tax enforcement
IRS requires employers to post mark W-2 Forms no later than January 31st.
The IRS encourages you to allow at least until February 15th for the form to be delivered. They recommend you contact your employer at the earliest possible date to confirm that they have your current address if you have moved in the last year.
Topics: household payroll tax
