At HomeWork Solutions we regularly consult with CPAs and other financial professionals about household employment. The most common questions we get go something like: “I have a client that hired a nanny and I don’t know what to do,” or, “If I remember my payroll class right from college I can just use a 1099 for this, right?” We’ve put together 7 things to know when a client brings this issue to you.

We don’t see discrimination claims too often in the household employment world but staffing agencies and CPA firms are more vulnerable. In 2018 there were 76,418 claims made to the Equal Employment Opportunity Commission with a price tag of $505m to employers. Here are some tips to help keep your name off that list.

If you employ someone to work in your home such as a nanny or a housekeeper, they are your employee and you are required to treat them as such. As an employer, you are legally required to ensure that their workplace is safe. Unfortunately, accidents happen sometimes, and you will need to be prepared. Having a worker’s compensation policy in place will ensure that your employee will be compensated for any medical care that is needed, including rehabilitation and/or lost wages due to an injury or medical procedure that happened while they were on the job. In addition, your worker’s compensation insurance will help protect you from lawsuits that could happen as a result of an accident at the workplace. Here are some additional reasons that show the importance of worker’s compensation insurance.

Surprisingly (or maybe not…) the Internal Revenue Code does not state specific expenses that can be deducted from your business. It does say “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business” which leaves some room for interpretation. Continue reading to find out more about writing off business expenses.

Do you have to pay your nanny or senior caregiver overtime? Overtime is a topic that many people are confused about, and we get a lot of questions surrounding it, too. Most  household employees work more than 40-hours a week, a necessity if their employers are going to be free to work their own full time job. Household employees are hourly workers under Federal law, and most caregivers who come and go are entitled to an overtime differential of 1.5 times their regular hourly rate of pay . Even if your employee has agreed to not be paid overtime, you will still need to factor overtime into their weekly rate of pay. Why? It’s the law and you will be held to that standard if there is ever a wage dispute. Here’s an example to help you figure out what is required on your end.

Organizations of all sizes change and adapt for many reasons. Sometimes change is due to growth and opportunity, sometimes it’s not. Either way, change brings stress to employees and how that is managed can make all the difference.

The “360-degree performance evaluation” has grown in popularity in recent years. This process involves the input of peers of, reports of, and even clients that worked with the person being evaluated. The idea is to get a holistic view of how well a given employee does their job.

Now that your filing is done you may have some questions. Here are some common ones and their answers.

If you’ve just completed your tax return and you have realized that you have claimed too much or too little, it may be time to reevaluate your W-4 form. Here is why the W-4 form is so important: the W-4 is completed by you as the employee and tells your employer how much of your gross earnings need to be deducted from your paycheck for taxes.

Here are some key tax deadlines for the second quarter of 2019 to note for employers. These can vary depending on the type of employer you are (corporate vs. household for instance) and there may be additional deadlines that pertain to your State. We are happy to answer any questions about household employer tax filings, just give us a call at 1-800-626-4829.