With compliance rates hovering around 10-20%, many household employers are only now beginning to seriously consider the costs and risks related to paying nannies and other household workers "on the books." While filing and paying taxes on household employees brings with it additional costs and paperwork, more families are recognizing the merits of filing as employers, and helping household workers with income tax withholding.  

Topics: household employee taxes, nanny payroll, nanny tax, nanny taxes

Household employee placements- including butlers, chefs, housekeepers and nannies- are on the rise, said Sarah Tilton of the Wall Street Journal in a recent online article. Accustomed to the high level of service they receive on luxury vacations and five star hotels, wealthy homeowners are increasingly staffing their residences with specially trained personnel to make their lives more comfortable.

Topics: household employee taxes, 1099 v w-2, domestic employer legal responsibilities, nanny tax compliance

The early bird really does get the worm, according to a recent article featured on The Motley Fool, a multimedia financial-services company that reaches millions of people each month through its website, books, newspaper column, television appearances, and subscription newsletter services. Author Jim Staats of Manilla.com reports that it’s never too early to prepare the necessary paperwork before the April 15th deadline; in fact, there are several ways that he suggests you can try to lower your tax bill each year:

Topics: filing taxes, tax return, nanny taxes

If you employ a household employee (defined by the IRS as any domestic worker earning more than $1900 in calendar year 2014), you are responsible for the so-called "nanny taxes". By keeping track of paperwork, you'll be in a much better position come tax time next year. Nanny agency owners can also benefit from staying organized during the year whether they are filing their agency's taxes on their own or with a tax preparer.

Topics: household employee taxes, household employee, payroll recordkeeping, nanny tax compliance

Smart employers know that key benefits such as health insurance that is paid for in whole or part by the employer is an important employee recruitment and retention tool.

Topics: nanny health insurance

Recently,  Dr. Judith L. London published a book of 54 stories detailing the challenging and sometimes heroic lives of caregivers of Alzheimer's sufferers. And it's no wonder Dr. London found it compelling to collect a these stories in one place:  in a study conducted by Stanford University and the Alzheimer's Association, more than 15 million people provide unpaid care for family members,  or even friends, who suffer from the disease.

Topics: elder care, Alzheimer's, senior care

The Department of Labor extended minimum wage and overtime rules to most home care workers who aid the elderly, and the media is running to provide perspective on caring for aging Americans.  The new rules, which go into effect Jan. 1, 2015, change how the companionship exemption to minimum wage and overtime under the Fair Labor Standards Act works.  Ashlea Ebeling of Forbes recently published a comprehensive article on this matter called, “Hiring Help For Aging Parents? Read This First. “ If you’re fortunate enough to have parents living into their golden years, there will inevitably come a time when you notice that everyday tasks become everyday obstacles, and getting reliable, affordable and caring help becomes the holy grail. 

Topics: elder care, senior caregivers, overtime rules, household payroll tax, hiring care for seniors

Immigrants, including undocumented immigrants, must comply with the same tax laws as U.S. citizens- including paying the so-called "nanny taxes". Allan Wernick an attorney and director of the City University of New York's Citizenship Now! Project, recently wrote an article in the Daily News about tax compliance for non-U.S. citizens and their employers. This includes immigrant nannies!

Topics: foreign domestic workers, household employee, G5 domestic

Moving your family can be one of life's most exciting times, yet also one of the most stressful times. Finding a new place, selling an old place, leaving a job, starting a new one or transferring within a company, packing, unpacking, leaving an old nanny, hiring a new one, (or sometimes the nanny moves or commutes to the new location if it’s a local move) the list can seem like its endless.

Topics: nanny payroll, nanny payroll tax, nannies, calculate nanny payroll tax

A client calls and say "I want to pay my nanny $16.00 an hour take home, can you help me?" When I hear this question it is like nails on a chalk board; however it’s also a great opportunity for me to explain the nanny taxes, how payroll works and why paying a net per hour is the worst idea.  This is often referred to as 'Grossing Up' a paycheck and it can lead to major headaches.

Topics: nanny, nanny payroll, nanny payroll tax, nanny hourly wage, nannies