A new federal tax law passed this summer, and it includes a provision that could include tax savings for household employees—but only if you know the detail. The One Big Beautiful Bill Act (OBBBA) includes a “No Tax on Overtime” rule, and although it doesn't directly change household payroll practices, it does impact tax reporting and employee tax credits.
Topics: nanny, nanny overtime, agency, senior, CPA, live-in household employee overtime, no tax on overtime rule, FLSA overtime deduction, no tax on tips, household employee overtime, OBBBA tax bill, One Big Beautiful Bill Act, household employer tax 2025, nanny payroll tax update, IRS overtime tax deduction
The 2025 Open Enrollment Period for health insurance is nearly here — and it’s an important time to check your coverage.
Topics: nanny, nanny health insurance, agency, senior, CPA, open enrollment 2025, premium tax credits, ACA subsidy expiration, caregiver health coverage, QSEHRA for household employees, ICHRA for nannies, Healthcare.gov subsidies, health insurance options for caregivers
Hiring someone to work in your home—whether it’s a nanny caring for your children, a caregiver supporting an elderly parent, or a housekeeper helping manage your household—means stepping into the role of a household employer. Along with that role comes the responsibility of handling payroll correctly, including understanding what you’re allowed to deduct from your employee’s paycheck.
Topics: nanny, agency, senior, CPA, household employee paycheck deductions, legal payroll deductions for nannies, illegal payroll deductions household staff, household employer payroll compliance, wage advance repayment agreement, HomeWork Solutions payroll services, nanny payroll deductions, household payroll laws by state
If you're a household employer in California, there’s a new requirement on the horizon you’ll want to be aware of: the CalSavers Retirement Savings Program. While no immediate action is needed, this is something you’ll want on your radar—especially as the deadline approaches.
Topics: senior care, nanny, agency, CPA, CalSavers for household employers, CalSavers deadline 2025, CalSavers, California domestic worker retirement, California nanny employer retirement plan, nanny employer CalSavers, senior caregiver CalSavers, HomeWork Solutions CalSavers help, household employer payroll compliance CA
Did you employ a nanny or other household worker in 2024 and pay them $2,700 or more in wages? If so, congratulations—you’re officially a household employer with tax filing obligations in the eyes of the IRS! That means you will need to report your employees’ wages and pay employment taxes when you file your federal income tax return.
Topics: agency, CPA, nanny taxes 2024, household employer tax forms
Surprisingly (or maybe not…), the Internal Revenue Code doesn’t provide a neat little list of exactly what can and can’t be deducted as a business expense. Instead, it gives us this broad guideline:
Topics: nanny taxes, household payroll, agency, CPA, business expense deductions, household employee tax rules, self-employed tax write-offs
Many families who hire household employees, like nannies, senior caregivers, or housekeepers, may not realize they’ve become employers in the eyes of the IRS and labor authorities. It’s common for families to agree to pay "off the books" without thinking about taxes — until January rolls around and the employee asks for a W-2.
Topics: nanny agency, nanny, household payroll, senior, CPA, W-2 for household employee, W-2 nanny, W-2 caregiver
Updated December 2024
Every year HomeWork Solutions prepares a summary of new or updated household employment tax laws and benefit information.
The IRS annually reviews, and adjusts as necessary, the wage payment threshold that obligates a family to pay Social Security and Medicare taxes. These tax withholdings are reported annually on a W-2. This threshold will increase to $2,800 for 2025.
If you employ a nanny, senior caregiver, or other household worker, it’s essential to stay informed about payroll tax obligations — especially the FUTA Credit Reduction, which can impact the amount of federal unemployment tax you owe. If you’re not familiar with this term, don’t worry. We’re here to explain what it means, how it works, and how it might affect your payroll in 2024.
Topics: nanny, senior, CPA, Household payroll compliance, FUTA Credit Reduction
Correcting the mistake of wages paid under the table is the right thing to do, and we can help.
Topics: nanny, senior, CPA, Pay caregiver on the books, How to pay a nanny legally, Household payroll service, Pay nanny legally, Back taxes for nannies
