Nannycare is expensive, and families often wonder, shouldn't we just find a good daycare? HomeWork Solutions reached out to Marc Lenes, the owner of Wee Care Nanny Agency, a household staffing agency founded in 2001 and based in Stamford, CT to make the case for nannycare. Marc has many years of experience talking families through the various childcare options.
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Topics:
nanny employment practices,
nanny employee
California State Assemblyman Tom Ammiano (D-San Francisco) is set to introduce legislation in the California State Assembly modeled after 2010's New York Domestic Worker's Bill of Rights.
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Topics:
nanny employment practices,
nanny tax,
domestic workers bill of rights,
nanny work agreement
Employing a nanny is expensive. After the family's mortgage payment, the nanny's salary is often the biggest expense in the household. Add the cost of taxes on top of this and many families wonder "Why?" They reason that not paying the taxes lets the nanny keep more money and saves them 10% on taxes. The nanny makes little enough anyway - why should she have to pay tax?
Reporting nanny wages and paying Social Security taxes is the law. It is also the right thing to do for your nanny. Think about it. When you and your nanny agree to pay 'off the books' you are mutually agreeing to break the law. Is that the way you want your employment relationship with your nanny to start out? What message does that send her?
Risks of Nanny Tax Avoidance...
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Topics:
nanny payroll tax,
nanny tax,
nanny taxes,
nanny tax compliance
This is a reminder that the nanny's (employee's) Social Security Tax Rate is reduced to 4.2% for 2011. According to Internal Revene Service guidance, all employers must be making correct payroll tax deductions no later than January 31, 2011 and they must make refunds to the employee of any over-collected Social Security Taxes on wages paid in 2011 by that date.
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Topics:
nanny payroll,
nanny payroll tax,
nanny tax,
nanny social security tax rate
Actor Robert DeNiro and wife Grace Hightower settled a longstanding legal dispute with their former nanny, who sued for unpaid overtime and holiday pay. Barry's original court filing in Manhattan in 2009 sought $40,000 in unpaid wages. The $30,000 settlement, agreed to by all parties, represents unpaid overtime alleged to total 750 hours and holiday pay for a 9 month period of employment from 2006 - 2007.
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Topics:
nanny hourly wage,
nanny non-exempt employee,
nanny overtime
Note: Special thanks to our guest blogger, Bob King, for his discussion below on nanny employment termination and the return of family property. Bob is an attorney and founder of Legally Nanny, the leading law firm providing legal and tax advice to household employers.
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Topics:
nanny return of family property,
nanny employment termination,
nanny separation
Illinois Governor Quinn signed legislation on Thursday, January 13, 2011 that increased income taxes for Illinois residents.
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Topics:
nanny payroll,
nanny payroll tax,
calculate nanny payroll tax
Many families (and agencies) use nanny work agreements that cover a specific period of time, generally one year. This is NOT a good idea. In a complicated United States District Court, D. Oregon case, the court affirmed that nannies are indeed non-exempt employees and are entitled to hourly pay and overtime pay for hours worked in excess of 40 in a work week.
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Topics:
nanny employee,
nanny non-exempt employee
Attention nanny employers! Please make sure you recalculate your nanny's payroll deductions prior to issuing the first 2011 payroll. There have been changes to the Social Security tax rate, the Federal income tax rates, and many state income tax rates.
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Topics:
nanny payroll tax,
calculate nanny payroll tax,
new york household employment,
nanny social security tax rate