Tax season is in full swing, and Americans are preparing to file their annual income tax returns. If you are a household employer - you employ a nanny, housekeeper or senior caregiver - you will find conflicting advice on how to handle the "nanny taxes."

Q. I am a G-4 visa holder.  I do not pay US Income Taxes.  Am I required to file anything at year end?

While mileage reimbursement and commuter transit benefits are scheduled to decrease January 1, 2014, other nanny tax numbers will increase.

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.” In fact, complaince rates hover around 20%. More families are recognizing the merits of filing as employers, and helping household workers with required withholding and tax payment. While filing and paying taxes on household employees brings with it additional costs and paperwork, it also avoids stiff penalties if you are audited by the Internal Revenue Service.

HomeWork Solutions' clients who hire a nanny to provide childcare do so knowing that they have chosen the most expensive form of childcare. For most, this involves some sacrifices, cutting back expenses in other areas of the household. Hiring a nanny, however, provides the family much needed flexibility in scheduling, and allows the children to stay in their home every day receiving the close personal caregiving of the family's nanny.

In all other childcare settings - childcare centers, pre-schools and primary schools - the caregivers have opportunities for continued professional development via conferences, in-service education and even peer mentoring. A nanny, on the other hand, has to search out these opportunities. Once found, nannies often realize that paying for quality continuing education is outside their budgets.

 'Oh what a tangled web we weave when first we practice to deceive' 

New Jersey has several new employment related laws that go into effect on January 1, 2014.

California Governor Brown signed the California Domestic Workers’ Bill of Rights, AB 241, into law on September 26, 2013. The regulations become effective January 1, 2014.

This past year, shocking headlines of arrest, strip-search of Indian diplomat overshadow alleged mistreatment of her nanny.

Foreign diplomats and foreign staff members of the United Nations and other "Non-Governmental Organizations" associated with the UN are permitted under US law, as a courtesy, to bring their foreign domestic service workers to work in the United States. These foreign domestic service workers are employed as nannies, maids, housekeepers and senior caregivers. The US State Department imposes strict rules that the foreign diplomat must agree to, contractually, with the domestic worker that governs their employment in the United States as part of the visa application and issuance.

Can you believe another year has flown by already?  And 2014 is right around the corner …

HomeWork Solutions wants to help you stay ahead of the game by summarizing important deadlines and considerations before you get caught up in the holiday festivities.