Worker misclassification - the practice by an employer of treating an employee as an independent contractor for purposes of avoiding employment taxes - is a constant issue in the field of household employment. Many household employers - and employees - simply feel this is easier, that the tax forms are too complicated, or the tax expense too high.

The US Treasury's Internal Revenue Service (IRS) advises that G and A visa holders temporarily present in the United States as a foreign government related individual are non-residents for income tax purposes, no matter how long they have resided in the United States. The situation for a G-5 domestic servant, who is NOT a foreign government related individual is a bit different, and their Federal income tax filing status is determined based on their time in the country.

We recently posted some advice on how to choose a quality nanny referral agency. We work with agency partners nationwide to help their clients and referred private service professionals alike understand the mechanics of household payroll. Nannies from the Heartland Inc. is a well respected household staffing agency in Minneapolis, MN. Becky Kavanagh, an experienced placement counselor (with 22 years of nanny experience!) shares some of her thoughts on how parents can stay connected to their child's day.

The Internal Revenue Service (IRS) and 11 states, as we reported in October 2011, have entered into information sharing agreements for purposes of employment tax enforcement. Virginia, apparently, is making a concerted effort to collect state unemployment taxes from employers known to the IRS, but not to the state.

Reprinted with permission from First Class Care, Inc., a nationally recognized nanny referral agency in Chicago, IL, and a host of the Chicago-area National Nanny Training Day event. HomeWork Solutions is proud to support this event.

HomeWork Solutions' Kathleen Webb will be joining a wonderful panel coordinated by New York's Park Slope Parents that will help to step parents through the nanny hiring process. Follow the link for registration information and details.

The U.S. Department of Labor announced in December a proposed rule change that would extend minimum wage and overtime protections to cover elder care workers who currently fall under the companion exemption in the Fair Labor Standards Act. The DOL extended the comment period on its proposed rule to extend minimum wage and overtime protections to elder care workers to March 21. Originally the comment period was scheduled to close on Feb. 27. This is the second extension.

HomeWork Solutions proudly offers active duty military personnel complimentary enrollment ($100 value) with the first quarter of service. To receive this discount, new clients must provide a valid .mil email address and enter MILITARY DISCOUNT as the referral code in our online service enrollment.

We recently posted some advice on how to choose a quality nanny referral agency. We work with agency partners nationwide to help their clients and referred private service professionals alike understand the mechanics of household payroll. Nannies and Housekeepers USA is a well respected household staffing agency in Las Vegas NV. Their founder, Lexy Capp, shares some of her thoughts on her business' role in insuring quality nanny referrals to her clients.

According to a report released by the National Taxpayer Advocate Nina E. Olson, the number of tax returns the Internal Revenue Service decided needed additional screening for possible fraud and/or identity theft in 2011 exceeded 1 million, a 72 percent increase over 2010. The office of Taxpayer Advocate is established as an independent watchdog within the IRS and it reports annually on the agency's performance.