Another year has flown right by and the New Year is right around the corner. It seems like every year time moves faster, and it is harder to keep track of all the last minute, year end details.
This time of year is exciting for everyone although our traditions and ways to celebrate the holiday season may vary (and might add hours to your nanny's or housekeeper's schedule). Are you considering giving your household employee a Year End Bonus to show how much you appreciate her? Is it time to review her performance and adjust the pay rate? Will you celebrate the holidays this year by taking a family vacation (with or without your employee)?
All these are common situations around the holidays; but they also bring up some important extra steps that you must keep in mind:
Extra hours and/or bonus payments to be included in your 2013 payroll must be reported to your payroll representative (NaniPay) as instructed.
Bonuses, cash, or non-cash (gift cards) are taxable income and should be reported as such. In the eyes of the IRS, there is no such thing as a non-taxable GIFT between an employer and an employee.
Bonus payments require a special calculation; HWS can provide assistance with calculating a bonus for your employee. Click here for more information.
Does HWS provide payroll services to your household workers? Remember, all bonuses to be reflected in 2013 Tax Returns must be reported no later than close of business (5:30 PM ET) on December 9th.
- Please include the name of the account holder, your employee(s) name(s), and bonus amount and indicate if the amount is gross or net.
- There is a $50 fee to expedite the process which will apply for bonuses reported to us between December 10th and December 15thnoon (EST).
- Bonuses reported after the December 15th noon (EST) cutoff time will be included in 2014 payroll.
Unpaid leave.
Employee Separation.
Any change in employee hours or pay rate.
Reminder: December 25 and January 1 are US Bank Holidays.
Thank you in advance for your cooperation. Please feel free to email or call if you have any questions or concerns.
On behalf of the HomeWork Solutions' Family, I would like to wish you a very happy and safe holiday season!!
Vanessa Vidal, FPC
HomeWork Solutions, Inc.