Life is busy, and sometimes hiring household employees to help around the house is a necessity. If you are considering hiring a nanny, house cleaners, senior caregiver, personal chef, or some other type of experienced domestic employee, there are a few things to keep in mind.
Get a background check on all top candidates.
Background checks are a vital component of the hiring process. These screenings look in detail at the history of a prospective employee. They often alert employers about things they wouldn’t usually know about the candidate. A professional background check will look at the person’s criminal history, which is critical to know about before hiring them to work in your home. Learn more about what is included in a background check here.
Consider what benefits or insurance options you’ll offer.
As a U.S. employer, you can choose not to offer health insurance or benefits to your domestic employee. However, offering a competitive benefit package is one of the best ways to attract and retain the best caregiver. Most of the time, employers offer between 5 and 15 days of paid time off, in addition to paid holidays. Insurance is optional, but paying half of the insurance premiums or reimbursing some or all medical costs is not uncommon. Please consider checking our State Tip sheets to determine if insurance is required or not, and how much you can expect to contribute.
Understand overtime rules.
It might seem easier to pay your employee a weekly or monthly salary to avoid overtime. However, this could cause an issue during a wage dispute because it goes against the Fair Labor Standards Act (FLSA) overtime rules. The FLSA states household employees who live out of the home should be paid 1.5 times their hourly wage for all hours over 40 per week. For live-in employees, overtime pay is calculated at their regular hourly rate. However, some states have rules and exceptions to the live-in exclusion – especially for senior caregivers. Check here for more information.
Our staff at HomeWork Solutions are the experts on federal taxes and labor laws surrounding household employment. We know you’re busy, and you probably don’t have the time or energy to stay up to date on the ever-changing state and federal tax and payroll laws. Let us help simplify things for you with our customized service plans. Contact us today to learn more.