The historic 2016 US Presidential Election will bring sweeping change to Washington DC, and an expected 4,500 jobs will be staffed by the incoming president in the next two months as he establishes his team. The Presidential Transition Team is already vetting nominees for Cabinet positions and political appointees in various senior-level agency and ambassadorial posts.

If you are being considered for any of these positions, you’ll be required to answer questionnaires as part of the vetting process that includes references to household employment and the “nanny tax”. Questions might be something like:

Your nanny has worked hard for you all year and you may be wondering if a year-end bonus is warranted. You ask around the office and the answers are all over the place. While a clear majority of nanny employers provide additional compensation or paid time off at the end of the year, many families like you are uncertain about what is customary. 

The annual year end bonues a great opportunity to show your nanny that you appreciate everything that she has done to go above and beyond her regular duties. While an end of year bonus is not required, to your nanny a gift of recognition is always appreciated.

If you’re just beginning the search of hiring a new nanny to join your family, you likely have a list of requirements that you want fulfilled and hiring a bilingual nanny may be something high on your priority list. Instilling a love for a variety of cultural traditions and languages is important to many families and if you’re thinking of hiring a bilingual nanny to join your family, here is some basic information on how to go about this process.

If you’re thinking about hiring a senior caregiver this year, it’s crucial to do your research and be sure you know how to go about it – especially when it comes to payroll. There is a lot of misinformation online that can be confusing for families. Here, we’ll break down myths versus facts so you know exactly how to pay your caregiver fairly while withholding proper taxes.

Child care can be extremely costly. One of the best ways to provide personalized small group care and save money on child care without cutting corners is start up a nanny-share with another family.

You’ve hired a live-in nanny and you’re excited to have her join your family. Now it is time to address the details - outlining some important parts of what the living arrangements will look like. Here are some helpful tips for you to consider when it comes to considering the impacts of another adult in the house and how you should go about setting boundaries.

If you’ve recently hired a senior caregiver, it is extremely important that you understand how to properly manage payroll, as there is a lot of misinformation out there that can be confusing. If you can understand what the biggest problems with senior caregiver payroll are, then you will be able to get started on the right foot at the very beginning of the employment relationship.

If you employ one or more domestic workers (nanny, senior care aid, housekeeper, etc.), you have special responsibilities mandated by the New York Department of Labor.

Compensation

• Minimum Wage: You must pay your worker at least the minimum wage. If you provide meals or housing to your employee, you may be eligible for a credit toward the minimum wage paid to the worker (for more information, visit the NY Dept. of Labor website).
• Overtime: An employee is entitled to overtime at 1.5 times the employee’s basic hourly rate after 40 hours of work in a calendar week. If the Employee lives in your home, overtime is engaged after 44 hours in a workweek.
• Paid Time Off: After one year of employment, employees are entitled to three paid days off.

Time Off

• Weekly: One day of rest must be provided per week. Employers are encouraged to set this day to coincide with the employers day of worship, if they observe one.
• Yearly: After one year of employment, employees are entitled to three paid days off per year.

Written Work Agreement

• Contract: To be enforceable, a work contract must offer notice on policies regarding sick leave, vacation, personal leave, holidays, and hourly reporting.
• Sample Contract and Free Guide to Writing Your Own Nanny Contract

Insurance

• Unemployment Insurance: Unemployment insurance is required for any employee you pay over $500 per calendar quarter.
• Worker’s Compensation Insurance: This insurance is required for any employee that works at least forty hours per week, and covers them (and you) if they are injured on the job.
• Statutory Disability Insurance: This insurance covers an employee who cannot work because they are injured or sick (this includes pregnancy) as a result of something that does not occur in the course of their work. This policy pays benefits for up to twenty-six weeks. The employer can charge the employee up to $0.60 per week to cover the cost of the policy.
• Health Insurance: You are not required to provide health insurance to your employee.

Payroll Taxes

• State and Federal Payroll Taxes: The employer is responsible for unemployment tax and the employer’s portion of the FICA taxes. The employer is entitled to withhold the employee's portion of the FICA taxes from the nanny's wages; however, if the employer does not withhold the EMPLOYER remains responsible to pay this tax to the IRS.
• State and Federal Income Taxes: Income taxes are the nanny's responsibility. The nanny may ask and the employer may agree to withhold  federal, state, and local income taxes from the worker’s paycheck. The domestic employer is not required to withhold income taxes, it is an accommodation to the worker.
• Reporting: The worker and the employer must file certain forms to comply with tax requirements. To learn more about your tax responsibilities, call HomeWork Solutions at 1-800-626-4829 for a free consultation or visit us here for to learn about our payroll and tax compliance services.

For more information on the NY State Domestic Bill of Rights, visit their website.

Related Resource:

411: Household Payroll in New York

Webinar Recording: HWS and Park Slope Parents Employing a Nanny in New York