Household Employment Blog | Nanny Tax Information

Immigration Reform: Undocumented Nannies?

Written by Kathy Webb | 2/12/13 4:00 PM

President Obama and congressional leaders in both parties have re-energized the debate on proposed immigration reform in the last several weeks. A "pathway to citizenship" for undocumented aliens currently residing in the US is a key element of the debate.

Many undocumented aliens work in domestic service - as nannies, housekeepers, and senior caregivers. The families they work for are generally very appreciative of the services they provide and would like to assist their undocumented nanny secure legal status.

Proposal details are scant, but there is a common theme. The "pathway to citizenship" will require that the immigrant seeking documents that regularize their status will have to pass certain 'tests', including proving that they paid taxes on their income while they were residing in the US. This presents a concern to families who largely pay these domestic service workers "under the table."

The specific details of how household employees will apply to the government for probationary status, pay back taxes, including employment taxes such as Social Security and Medicare, and meet other requirements will need to be worked out.

What is clear is that domestic workers will require the cooperation of their employers to create a work history and file back employment taxes.  A clean record will undoubtedly benefit a worker on their path to obtaining legal status.

HomeWork Solutions routinely assists families with past due household employment tax obligations. It is not too late to avoid the largest, Federal penalties for 2012. We offer complimentary telephone consultation. Call us today at 800.626.4829 to discuss your options or download our Free Household Employer Quick Start Guide.

Update May 28, 2013: Newsday has a detailed article regarding undocumented domestics and proposed immigration reform.