Classifying a worker as an independent contractor frees a business or family from payroll tax liability and allows it to forgo providing overtime pay, unemployment compensation and other employee benefits. It also frees the business from responsibility for withholding income taxes and the worker’s share of payroll taxes – household employers can legally omit withholding even for an employee.

This post is authored by our special guest, Karen Holland.  Karen is a Newborn Care Specialist, Postpartum Doula, and New Parent Educator, a Red Cross CPR/First Aid/AED Instructor, and holds her SNNEB from Scotland, where she was born and raised. With more than 30 years experience working with families and newborns, Karen provides exceptional, non-judgmental Postpartum Doula, Newborn Care Specialist, and New Parent Educator services to the Greater Washington, D.C., area through her firm, All Baby Concierge. You are invited to follow Karen on Facebook. 

One of the biggest concerns for family business owners is succession planning. Often, the best time tax-wise to start transferring ownership and executing a strategy for family business succession planning is long before the owner is ready to give up control of the business.

A family limited partnership (FLP) can help owners enjoy the tax benefits of gradually transferring ownership yet allow them to retain control of the business.

Background screenings and reference checks are important parts of the hiring process. Which one do you need? As experts in the nanny field, we recommend that you do both. Here are the differences between the two and why it’s critical to get both done before you hire anyone to work inside your home.

Under the Tax Cuts and Jobs Act, employees can no longer claim the home office deduction. If, however, you run a business from your home or are otherwise self-employed and use part of your home for business purposes, the home office deduction may still be available to you. Here is a full explanation of the home office deduction requirements.

Nannies spend a lot of time with the kids each day. That often means there is a lot of dialogue and sometimes many hours of answering questions or explaining things. When it comes to major life changes or happenings around the world, kids are usually observing more, even though we may not think they’re paying that much attention. Things going around them can affect them, so it’s important to promote positive communication.

Once an employer identifies a prospect for an open position and sets up an interview, another great challenge arises: How do you effectively use the interview to determine whether this person is right for your organization? Household employers, this means you too!

You’ve done your research and interviewed lots of potential candidates for your household employee position. Whether it’s a nanny, an in-home senior caregiver, or someone else that will work regularly in your home with you, making the decision to hire the right person can feel like a lot of pressure. And more than likely, you have questions on what your responsibilities are for paying taxes on your household employee.

For small businesses and household employers, managing payroll can be one of the most arduous tasks. Adding to the burden earlier this year was adjusting income tax withholding based on the new tables issued by the IRS. (Those tables account for changes under the Tax Cuts and Jobs Act.) But it’s crucial not only to withhold the appropriate taxes — including both income tax and employment taxes — but also to remit them on time to the federal government.

Wondering if a nanny is the best choice for your family? Hiring a nanny can be a great thing for your family and can help alleviate some of the responsibilities and stress you have as a working parent. A good nanny will have your children’s best interest in mind and taking good care of them will be their primary concern. Here is some important information about a nanny job description as well as tips on how you can foster a great nanny/parent relationship.

Nannies will take care of your children while you’re away. They will play with your kids, feed them, help them with toileting, and will comfort them when they need it. The bottom line: a nanny will step in to provide similar things that you would provide if you were there. Nannies may also do housework like wash dishes, do the laundry, straighten the children’s rooms or play areas, and more. A nanny’s specific duties will vary from family to family and the job description will need to be something that you discuss in detail with your nanny before you hire her.