You are responsible to file and pay household employment taxes for all individuals to whom you paid $1800 or more last year in conjuction with your personal income tax return.

HomeWork Solutions has experienced a dramatic increase in the volume of calls from employers of undocumented household workers in the past weeks.  The extensive media coverage of Washington’s renewed, bipartisan commitment to implement comprehensive immigration reform - and create a path to citizenship for undocumented workers - raises questions for families employing undocumented domestic service workers.

The IRS reports that audits of tax returns with income over $200,000 increased by 13% in 2012 over the prior year. The Wall Street Journal's Market Watch recently published advice on 5 steps to take to avoid an IRS audit on your Federal income tax return.

You have a new baby in the house, you are not sleeping well, and you need to line up a great nanny before you return to work. Or mom is declining and you have to hire a senior caregiver to stay with her while you are working because she just is not safe alone any longer. Hiring caregivers, whether a nanny for your children or someone to care for your aging loved one, is a stressful experience.

This is a question that more and more household workers are asking as they face retirement.  For workers who have been paid “off the books” – and that includes a large percentage of household employees – there is no easy answer.

Nannies and senior caregivers are hired to help keep loved ones safe and well cared for. Recently a Texas nanny that the hiring family thought was well screened was arrested and charged with child endangerment after the mom returned home and found the nanny drunk and passed out and her 20 month old free to roam the home. Turns out the nanny has quite a history of prior offenses, none of which were found because of the type of 'background check' run. Stories like these make families wonder how they can better screen their caregivers.

President Obama and congressional leaders in both parties have re-energized the debate on proposed immigration reform in the last several weeks. A "pathway to citizenship" for undocumented aliens currently residing in the US is a key element of the debate.

20 years ago HomeWork Solutions was founded dreaming of creating a service business to help busy families deal with household payroll tax compliance. The failed Zoë Baird cabinet nomination provided the inspiration and belief that many smart, successful families not only wanted, but needed help in this labyrinthine area of tax and employment law.

Q. I am a G-4 visa holder and I sponsor a G-5 maid.  I do not pay US Income Taxes.  Am I required to file anything at year end?

Staff members of international organizations inside the US territory are not required to pay US Income Taxes on their income from the international organizations; however, when they become G-5 sponsors, they must file/pay employment taxes arising from their domestic (household) employment.  Federal employment taxes are reported and paid on the Form 1040 Schedule H.  If there is no income subject to US Income taxation, this Form must be submitted with payment as a stand along document to the Federal Government no later than April 15^th.

P. Soy titular de una visa G-4 y patrocino a un empleado con visa G-5. Yo no pago impuestos sobre la renta en los  Estados Unidos. ¿Debo presentar algún documento a fin de año?

Miembros del personal de organizaciones internacionales dentro del territorio de los EE.UU. no están obligados a pagar impuestos por sus ingresos, sin embargo, cuando se convierten en patrocinadores de un empleado con visa G-5, deben presentar y pagar impuestos correspondientes al empleo de éste. Los impuestos federales son reportados y pagados mediante el Formulario 1040 Anexo H. Si no está sujeto a impuestos sobre la renta de EE.UU., este formulario debe ser presentado como documento individual y pagado al Gobierno Federal a más tardar el 15 de abril.