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.
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.
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.
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.
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.
Topics: nanny payroll tax, calculate nanny payroll tax, new york household employment, nanny social security tax rate
There is an excellent article on the Washington State Workers Compensation Insurance Blog that outlines the dangers of not paying the nanny taxes, and the potential benefits to the employer for nanny tax compliance. Quoted is one of HomeWork Solutions' favorite go-to industry experts, attorney Bob King of Legally Nanny.
Topics: nanny workers compensation insurance, nanny tax, nanny tax compliance
Several pieces of federal legislation from 2010 will impact household employers and the payroll taxes (also known as Nanny Taxes) the household employer deducts from a nanny's pay check.
Topics: nanny social security tax 2011, nanny payroll tax, nanny tax
G-5 domestics who are in the United States less than 183 days in their first year working in the US are considered non-resident aliens for Federal income tax purposes and will file a Form 1040NR for the first year of employment.
Topics: G5 domestic, GV domestic, G-5 non-resident alien
“Most workers [who are classified as independent contractors] are employees under the FLSA’s broad definitions.” ~ David Weil, Administrator, US Department of Labor Wage and Hour
Nannies and senior home caregivers are almost always employees of the hiring family, yet every year thousands of families classify their nanny or senior caregiver as an "independent contractor" and fail to pay the employment taxes and unemployment taxes on the wage they pay their family's nanny.The IRS estimates that fewer than one in five famlies with a household employee comply with the payroll, tax, and reporting requirements in the tax code. Industry experts place the compliance rate much lower than 20%, and have calculated a $3 BILLION dollar per year tax gap - the taxes owed but not collected on household senior homecare and nanny employment.
Topics: worker misclassification independent contractor, nanny employee, nanny independent contractor
The mileage reimbursement rate typically used to reimburse a nanny for using her personal vehicle to transport her charges to and from school, appointments, activities, etc. has increased one cent in 2011 to $0.51 per mile.
Topics: nanny employment practices, nanny mileage reimbursement, nanny car allowance
