Hiring a nanny to care for children, or a caregiver for an elderly family member can be very expensive. These employees often work long hours and your need for their services is generally perpetual. The high cost of employing household workers often makes it tempting for families not to report paid wages, since reporting carries additional financial requirements related to unemployment insurance and other benefits. However, the risks to families who do not pay their domestic employees "on the books" are considerable.

Topics: household employee taxes, household employee, household employer, household payroll tax, workers compensation household employees

Let’s face it: sitting your aging parents down to talk about their finances is about as comfortable as talking to them about sex (eons ago, they probably felt the same way you do right now!) But just as it was back then, the conversation- though difficult- is imperative to your future decision making.

Topics: elder care, aging in place, eldercare, senior care, hiring care for seniors, senior home care

Families know that a comprehensive, legitimate pre-employment background check, thorough reference checking and organized behavioral interviewing questions are the gold standard in nanny recruiting. The careful background screening is a must, but you should not be lulled into thinking that just because a nanny that passed these 3 steps with flying colors you don't need to pay attention and observe the nanny on the job.

Topics: nanny, nannies, nanny tax, nanny tax compliance, nanny background screening

In an inspiring and forward-thinking section of the New York Times on innovations in retirement, an article on innovative solutions to senior living offered news on several fronts. While most readers will be familiar with the existing alternatives such as in-home senior care, assisted living and independent senior living options, the article features new ideas that will certainly gain more traction as the baby boomer population ages. Often referred to as "aging in place," here are some examples highlighted in the article:

Topics: elder care, aging in place, eldercare, household employee taxes, nanny background screening

Regardless of whether your household employee is full time or part time, employers are required to pay employment taxes if the employee is paid $1900 or more per year (in 2014).

Topics: household employee, household employer, nanny taxes, 1099 v w-2, household payroll tax, household payroll

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