Social Security and Medicare, collectively known as FICA taxes, are a mystery to many domestic employers. Who is liable for them, how are they paid, and where are they reported are just some of the questions that plague domestic employers. While both taxes are calculated as a percentage of the gross wages, the employee’s portion of Social Security is 4.2% (for 2011 and 2012 only) while the employer’s portion is 6.2%, and both the employer and employee’s portion for Medicare is 1.45% of the gross wages.

Topics: nanny tax, calculate nanny payroll tax, household payroll tax, nanny tax compliance

Author: Vanessa Vidal

Topics: Nanny Cam, nanny work agreement, nanny job interview

Topics: elder care, household payroll tax, payroll tax enforcement

We field increasing questions from families and their staff about holiday and vacation pay as families prepare for their summer vacations.

Topics: nanny paid time off, nanny benefits

A recent case before the California Appeals Court for the Fourth Appellate District highlights the important responsibility an employer has to maintain accurate and contemporaneous time records for employee work and compensation.

Topics: time tracking

California is striving to shine a light on its underground economy.  At the end of 2011, the LA Times reported that employers who pay their workers under the table - to avoid payroll taxes, workers’ compensation insurance and other government mandates - cost the state about $7 billion annually in lost tax revenues.  Last week, California’s Labor Enforcement Task Force set up a public hotline for workers and employers to call in complaints and provide enforcement tips.  Employers who are playing by the rules want to create a level playing field by "ratting out" their competitors who cheat.  One state official notes, “The hotline will be a valuable tool to gather information and bring into compliance those employers who treat workplace safety and wage and hour laws as a nuisance”. 

Topics: nanny tax audit, domestic employer legal responsibilities, payroll tax enforcement, california household employment

Efforts by workers’ rights groups to spread the word about New York’s Domestic Workers Bill of Rights have resulted in a big uptick in grievances filed against household employers.  Advocacy groups are actively canvassing New York City neighborhoods – in playgrounds and grocery stores and other places where nannies and other household employees are likely to go - to educate these workers about their rights.

Topics: new york household employment, New York household payroll

The beautiful baby has arrived and mom is preparing to return to work. The new parents begin interviewing nannies, a stressful endeavor for all concerned! Will she keep my baby safe? Will she love my child? Can I depend on her to be on time and not call out at the last minute? Does she have the experience I am looking for? Can I afford her? The absolutely last thing on the new parent's mind in these interviews is tax and labor law, and this is where nanny and family can find themselves out of sync.

Topics: nanny hourly wage, nanny work agreement, nanny wage

Most nannies and their employers work and are paid on a set weekly schedule; however, from time to time the family will require additional hours from their nanny. Legally, nannies are entitled to additional compensation for additional hours worked, and live out nannies, at a minimum, are entitled to the overtime differential (1.5 times the hourly rate) for hours worked over 40 in a work week. *

Topics: nanny employment practices, domestic employer legal responsibilities, nanny overtime

Topics: nanny employment practices, domestic employer legal responsibilities