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

As a household employee, planning for your retirement is one of the most important steps you can take for your future. While Social Security provides a foundation, building additional savings through retirement accounts can help ensure long-term financial security. Here’s some tips on retirement planning, the retirement savings options available, and information on how building an employer contribution into your total compensation plan can help.

Topics: nanny, senior, CPA, retirement savings account, HomeWork Solutions retirement support, nanny retirement savings, caregiver nanny retirement savings, household employee retirement savings

When managing household payroll, many people wonder if they should set up a Limited Liability Company (LLC) for additional protection. While the idea of an LLC can be appealing, it’s generally unnecessary for household employers and often doesn’t provide the legal or financial protection you might expect. Here’s why setting up an LLC is usually more trouble than it’s worth for household employment.

Topics: nanny, senior, CPA, Should I set up an LLC for household payroll, paying a nanny, household LLC, Managing household payroll taxes, Household payroll compliance

At HomeWork Solutions, we understand that household employment can bring unique challenges for CPAs and financial professionals. Whether it’s a client who just hired a nanny or a question about how to handle household payroll taxes, we're here to make sure you have the insights you need. To help you guide your clients confidently, we’ve compiled a list of nine essential tips that will keep you on the right track.

Topics: CPA, homework solutions

As a CPA, your expertise is unparalleled, but staying abreast of every niche area of accounting can be overwhelming. Industry-specific laws and regulations, especially those governing household employees, are complex and ever-evolving. This is where outsourcing can make a significant difference, relieving you from the burden of constant learning and allowing you to provide more comprehensive service to your clients.

Topics: household payroll, CPA, schedule H

Minimum wage will be increasing in many states and cities across the country.  As longtime advocates for fair and legal pay, we believe this is long overdue!  Domestic employees deserve a living wage that fairly compensates them for the invaluable work they do to keep our households running.

Topics: senior care, nanny, agency, senior, CPA

As the Baby Boomer generation ages, a growing number of them face decisions around long-term care needs for themselves or their parents. This presents an opportunity for CPAs to have important family wealth-planning conversations. By proactively discussing potential home caregiver requirements, you can position your firm as a trusted advisor while identifying clients who may need support transferring assets or updating estate plans.

Topics: senior caregivers, accountants, CPA

For CPAs, now is a great time of year to ensure clients with household employees—like nannies—are doing things the right way to make tax time easier for them and for you. It’s ideal if these clients have diligently tracked hours, issued accurate paychecks with the appropriate Social Security and Medicare taxes withheld, and kept up with quarterly unemployment tax filings and W-2 distribution. Unfortunately, this scenario is more the exception than the rule. Many employers of household employees are either not fully aware of their responsibilities or find themselves too pressed for time to manage them effectively, often creating additional workload for their CPAs.

Topics: household employee, household payroll, CPA

May was an extremely busy month for labor rules across the U.S. Read on for our latest roundup of the Department of Labor's final rule, its ramifications across industries, and expert opinions on how all these topics impact your practice and your clients.

DOL Finalizes Fiduciary Investment Advice Regulation | Practical Law The Journal | Reuters
Reuters
The Department of Labor (DOL) has finalized a regulation on the definition of fiduciary investment advice under the Employee Retirement Income ... 

Topics: FLSA, independent contractor, accountants, CPA