Minimum wage will be increasing in many states and cities across the country.  As longtime advocates for fair and legal pay, we believe this is long overdue!  Domestic employees deserve a living wage that fairly compensates them for the invaluable work they do to keep our households running.

Topics: senior care, nanny, agency, senior, CPA

If you hire individuals to work in your home, such as nannies, senior caregivers, or housecleaners, you are likely a household employer in the eyes of federal labor and tax authorities. This employment relationship means you're responsible for filing the proper taxes and providing the necessary paperwork to your employees if you pay them over $2,700 for the year (updated for 2024).

Topics: household employer, nanny tax, Senior Caregiver Payroll, domestic worker, caregiver tax, schedule H, household employment, homework solutions

As the Baby Boomer generation ages, a growing number of them face decisions around long-term care needs for themselves or their parents. This presents an opportunity for CPAs to have important family wealth-planning conversations. By proactively discussing potential home caregiver requirements, you can position your firm as a trusted advisor while identifying clients who may need support transferring assets or updating estate plans.

Topics: senior caregivers, accountants, CPA

If you've worked as a household employee and received your pay 'under the table,' you might wonder about your eligibility for Social Security benefits when you retire. The answer is not straightforward and depends significantly on your marital status, work history, and how your income was reported.

Topics: eldercare, nanny retirement, W-2, nanny, caregiver, Senior Caregiver Payroll, senior home caregiver, domestic worker, childcare

For CPAs, now is a great time of year to ensure clients with household employees—like nannies—are doing things the right way to make tax time easier for them and for you. It’s ideal if these clients have diligently tracked hours, issued accurate paychecks with the appropriate Social Security and Medicare taxes withheld, and kept up with quarterly unemployment tax filings and W-2 distribution. Unfortunately, this scenario is more the exception than the rule. Many employers of household employees are either not fully aware of their responsibilities or find themselves too pressed for time to manage them effectively, often creating additional workload for their CPAs.

Topics: household employee, household payroll, CPA

May was an extremely busy month for labor rules across the U.S. Read on for our latest roundup of the Department of Labor's final rule, its ramifications across industries, and expert opinions on how all these topics impact your practice and your clients.

DOL Finalizes Fiduciary Investment Advice Regulation | Practical Law The Journal | Reuters
Reuters
The Department of Labor (DOL) has finalized a regulation on the definition of fiduciary investment advice under the Employee Retirement Income ... 

Topics: FLSA, independent contractor, accountants, CPA

When Mike and Joyce welcomed Mike’s mother into their home following the loss of her husband, they also hired a part-time caregiver to assist with some of her daily needs. Opting for simplicity in a challenging time and not realizing there were employment obligations, they agreed to a $500 weekly payment off the books—a decision that seemed mutually beneficial at the outset. The caregiver proved invaluable over the nearly three years she worked with them, parting ways amicably when Mike’s mother transitioned to a nursing facility.

Topics: aging in place, eldercare, Hiring Elder care, hiring care for seniors, Senior Caregiver Payroll

At HomeWork Solutions, we understand the unique needs and benefits of a nanny-share arrangement. It's a fantastic way for families to access dependable childcare cost-effectively. By sharing a nanny, the children enjoy companionship, and the families involved benefit from a more affordable childcare solution. The nanny, in turn, often receives a higher rate than they would with a single family, creating a win-win scenario for all as long as communication and parameters are clearly established.

Topics: nanny share, nanny savings, hiring a nanny, childcare, employment compliance

Good communication that establishes a mutual understanding is necessary when hiring a nanny, senior caregiver, or other household employee to work in your home. When it comes to defining benefits such as paid holidays, the details matter to ensure there is no misunderstanding about how these holidays will be compensated. If the employee often works more than 40 hours per week, defining this benefit and clarifying expectations becomes even more critical. Let’s examine how labor laws determine when overtime is due and how guaranteed pay alters the picture.

Topics: overtime rules, household employee, household employer, hiring a nanny, time tracking, nanny hourly wage, domestic employer legal responsibilities, nanny overtime, Hiring Elder care, Senior Caregiver Payroll

On January 10, 2024, the U.S. Department of Labor (DOL) issued a final rule revising its guidance on how to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). Effective March 11, 2024, this new rule rescinds the prior independent contractor rule from 2021. 

Topics: CPA