Nannies are employees of the families they work for. They are not independent contractors, whether the family or nanny wants to be or not.

Families sometimes try to completely side step their employment tax obligations by giving the nanny a 1099 form at year end. In so doing, they avoid paying their share of Social Security and Medicare taxes, as well as unemployment taxes, and they push their tax obligations on to the nanny. This path allows the family the benefit of child care tax credits without the corresponding expense of paying their portion of the employment taxes.

Topics: nanny w-2 form, domestic employer legal responsibilities, nanny independent contractor, household independent contractor

New York State Law requires all private employers to provide written notice to employees of their rate(s) of pay and designated pay day on an annual basis. Notice must be provided between January 1 and February 2 2013. NYS' FAQ on the Wage Theft Prevention Act specifically states that an employer may not choose another time of the year to provide the notice!

Topics: nanny payroll, domestic workers bill of rights, calculate nanny payroll tax, nanny employee, household payroll tax, new york household employment, nanny work agreement

Clients from time to will ask us for assistance helping their departing nanny locate a new position. Many post "Nanny Available" advertisements on neighborhood list servs and bulletin boards. We recently came across the following example and wanted to share. Names have been changed!

Topics: nanny reference check

HomeWork Solutions is teamed with National Crime Search (NCS) to offer true, credible pre-employment background screening for families directly hiring household workers such as nannies, housekeepers, and home care workers.

Topics: household employee background check, nanny background screening

Many people hear the words "nanny confidentiality agreement" and think this is something Brad and Angelina need - not their family!

Topics: nanny employment practices, nanny work agreement, nanny contract

Many of HomeWork Solutions’ professional staff hold American Payroll Association (APA) professional accreditation. Regular professional education is a requirement to maintain credentials, and we receive many notices regarding webinars that help fulfill CPE credit requirements.

Topics: elder care, household independent contractor

Many families who expect a nanny or house manager to purchase items for the family provide a family credit card for the expenses – making tracking of the purchases easy and avoiding the need for expense reimbursement.

Topics: nanny expense reimbursement, nanny mileage reimbursement

We field increasing questions from families and their staff about holiday and vacation pay as families prepare for their summer vacations.

Topics: nanny paid time off, nanny benefits

California is striving to shine a light on its underground economy.  At the end of 2011, the LA Times reported that employers who pay their workers under the table - to avoid payroll taxes, workers’ compensation insurance and other government mandates - cost the state about $7 billion annually in lost tax revenues.  Last week, California’s Labor Enforcement Task Force set up a public hotline for workers and employers to call in complaints and provide enforcement tips.  Employers who are playing by the rules want to create a level playing field by "ratting out" their competitors who cheat.  One state official notes, “The hotline will be a valuable tool to gather information and bring into compliance those employers who treat workplace safety and wage and hour laws as a nuisance”. 

Topics: nanny tax audit, domestic employer legal responsibilities, payroll tax enforcement, california household employment

Efforts by workers’ rights groups to spread the word about New York’s Domestic Workers Bill of Rights have resulted in a big uptick in grievances filed against household employers.  Advocacy groups are actively canvassing New York City neighborhoods – in playgrounds and grocery stores and other places where nannies and other household employees are likely to go - to educate these workers about their rights.

Topics: new york household employment, New York household payroll