Summer will be here before you know it and that means that kids are out of school and ready for some relaxation and fun. If you continue to work full time during the summer, you must find reliable childcare for your kids during the duration of the summer. Finding a summer nanny could be something that you’ve never had to do before. It’s important to note that hiring a nanny for the summer is different than paying a babysitter for services occasionally. Hiring a summer nanny means you’re officially a household employer and with that, comes some rules that you’ll have to adhere to.

When employees are off the clock, how they choose to spend their time is up to them. However, that doesn’t mean an employer is immune to a staffer’s off-work behavior. Your organization (or personal reputation) can be severely harmed by an employee’s actions — even when he or she isn’t on the job.

If you have a new nanny or senior caregiver, it’s important that you have a reliable way to keep track of their hours worked. Accurate, contemporaneous time tracking will protect you as an employer from unpaid wage and overtime complaints and it will also ensure that the nanny or caregiver is paid for all their hours. Here are some free employee time clock apps that can help.

If you purchased qualifying property by December 31, 2017, you may be able to take advantage of Section 179 expensing on your 2017 tax return. You’ll also want to keep this tax break in mind in your property purchase planning, because the Tax Cuts and Jobs Act (TCJA), signed into law this past December, significantly enhances it beginning in 2018.

Disclaimer: HomeWork Solutions employees are experts in Employment Taxes, not personal income taxes. That said, we see these forms every day. If you have specific questions please see your personal tax accountant for more 2018 W-4 help.

First off, here is a link to the IRS maintained version of the Form W-4.

This new version has substantial changes. Even some elements that haven’t changed have been rearranged on the new 2018 federal W-4 form. Starting from the top we do see some familiar things (provided you’ve read the “fine print” of the form before). The general instructions haven’t changed much but there are some clarifications about the adjusted child care tax credit as well as credits for other dependents. You’ll notice then that the bottom third of the first page is now the Employee Withholding Allowance Certificate with no allowance worksheet above it. The section is still the same with name, address, social security number, etc. The most important things here are filing status (box 3) and number of allowances (box 5), the same as it has always been. The major difference is that getting to your number of allowances is considerably more difficult.

All employees, including household employees, use the Form W-4 to direct the employer on how to calculate Federal income tax deductions from their paycheck. The responsibility for the accuracy of this form rests with the nanny or other employee.

Once you’ve found the right person to serve as a nanny or caregiver in your home, you’ll be able to rest easy knowing that your loved one is in good hands while you’re away. Once you’ve hired your caregiver or nanny, you’ll discuss what hours they will need to work, but if you’re planning on "banking hours", or carrying their hours over, be aware that this process is illegal. Federal law requires that your household employee is paid for each hour they work in a given workweek.  If they work more than 40 hours in any given 7 day workweek, you must pay them overtime, likely at a rate of at least 1.5 times their regular rate. Some states even mandate daily overtime, so be sure you know the overtime rules in your state.

Travel nannies and newborn care specialists typically work in multiple states - and even countries - in the course of a year. A travel nanny is engaged by a family to provide childcare when the family is traveling to resorts, on a cruise, or just out of town a week or more on business. When it comes time to file and pay income taxes, multiple questions arise.

Many of our partners take advantage of working from their homes. It makes a lot of sense for convenience and cost. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. For 2018, even fewer taxpayers will be eligible for a home office deduction.