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Each year, the IRS releases an updated W-4 form, and while it's not mandatory for employees to fill out a new one annually, it’s a smart move to review it. Adjusting withholding helps employees avoid surprises like a big tax bill or an oversized refund at tax time.
Topics: nanny agency, nanny, senior, 2025 W-4 form, W-4 for nannies, tax withholding for employees, nanny tax withholding
Updated December 2024
Every year HomeWork Solutions prepares a summary of new or updated household employment tax laws and benefit information.
The IRS annually reviews, and adjusts as necessary, the wage payment threshold that obligates a family to pay Social Security and Medicare taxes. These tax withholdings are reported annually on a W-2. This threshold will increase to $2,800 for 2025.
If you employ a nanny, senior caregiver, or other household worker, it’s essential to stay informed about payroll tax obligations — especially the FUTA Credit Reduction, which can impact the amount of federal unemployment tax you owe. If you’re not familiar with this term, don’t worry. We’re here to explain what it means, how it works, and how it might affect your payroll in 2024.
Topics: nanny, senior, CPA, Household payroll compliance, FUTA Credit Reduction
Correcting the mistake of wages paid under the table is the right thing to do, and we can help.
Topics: nanny, senior, CPA, Pay caregiver on the books, How to pay a nanny legally, Household payroll service, Pay nanny legally, Back taxes for nannies
Recognizing your nanny's hard work is a thoughtful gesture that can strengthen your relationship and show appreciation for their care and commitment. Whether you're considering a holiday bonus, a week’s pay, or another token of thanks, it’s important to understand how gifting money or other items impacts both you and your nanny. This guide explores how much you can gift to your nanny, the tax implications of these gifts, and alternative options to ensure your generosity complies with regulations.
As a household employee, planning for your retirement is one of the most important steps you can take for your future. While Social Security provides a foundation, building additional savings through retirement accounts can help ensure long-term financial security. Here’s some tips on retirement planning, the retirement savings options available, and information on how building an employer contribution into your total compensation plan can help.
Topics: nanny, senior, CPA, retirement savings account, HomeWork Solutions retirement support, nanny retirement savings, caregiver nanny retirement savings, household employee retirement savings
If your nanny provides transportation for your children—whether it’s school drop-offs, sports practices, or playdates—it’s important to fairly reimburse them for the costs of using their vehicle. Proper reimbursement not only builds trust and goodwill but also keeps you compliant with tax and labor regulations. Here’s a straightforward guide to help you navigate mileage reimbursement for your nanny.
Topics: nanny, nanny mileage reimbursement, Nanny driving expenses, Gas reimbursement for nanny, How to reimburse nanny for gas, caregiver reimbursement
When caring for a senior loved one, planning for unexpected emergencies is essential. Seniors are particularly vulnerable in weather events and natural disasters and often have health conditions that require close monitoring. Ensuring a thorough emergency preparedness plan is a key responsibility for families and their in-home caregivers. Here are some updated tips for creating your 2025 emergency response plan.
Topics: senior, homework solutions, Emergency preparedness for seniors, Senior caregiver emergency plans, Senior safety during natural disasters
When managing household payroll, many people wonder if they should set up a Limited Liability Company (LLC) for additional protection. While the idea of an LLC can be appealing, it’s generally unnecessary for household employers and often doesn’t provide the legal or financial protection you might expect. Here’s why setting up an LLC is usually more trouble than it’s worth for household employment.
Topics: nanny, senior, CPA, Should I set up an LLC for household payroll, paying a nanny, household LLC, Managing household payroll taxes, Household payroll compliance
Finding the right in-home care for a loved one is a deeply personal and important decision. From medication supervision to help with daily activities like grooming or meal preparation, an in-home caregiver can make all the difference in providing a safe and comfortable environment. However, finding the right caregiver involves careful research and planning to avoid common pitfalls. Here are three key mistakes to steer clear of when hiring an in-home caregiver.
Topics: eldercare, senior care, senior, caregiver payroll services