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Household employee placements- including butlers, chefs, housekeepers and nannies- are on the rise, said Sarah Tilton of the Wall Street Journal in a recent online article. Accustomed to the high level of service they receive on luxury vacations and five star hotels, wealthy homeowners are increasingly staffing their residences with specially trained personnel to make their lives more comfortable.
Topics: household employee taxes, 1099 v w-2, domestic employer legal responsibilities, nanny tax compliance
Many families pay their household workers directly and subscribe to a service such as HomeWork Solutions' Essential Payroll to prepare necessary quarterly and end of year tax documents. We are often asked about whether pay stubs are necessary.
Topics: nanny payroll, calculate nanny payroll tax, domestic employer legal responsibilities, nanny tax calculator, household paycheck calculator
California Governor Brown signed the California Domestic Workers’ Bill of Rights, AB 241, into law on September 26, 2013. The regulations become effective January 1, 2014.
Topics: domestic workers bill of rights, domestic employer legal responsibilities
Topics: FLSA, overtime rules, nanny hourly wage, domestic employer legal responsibilities, nanny overtime
Congress is debating Immigration Reform, legislation that would establish a path to citizenship for the about eleven million undocumented workers living and working in the shadows today, bypassing tax law obligations. A good portion of these are employed as household workers such as nannies, housekeepers and senior caregivers.
Topics: domestic employer legal responsibilities, household payroll tax, nanny tax compliance
HomeWork Solutions is a leading national nanny/household employee payroll and tax company. We work with thousands of families, and hear and respond to the same questions/concerns over and over again. We want to take the opportunity to share this information with you through this easy to follow Q. and A.
Topics: babysitter nanny tax, worker misclassification independent contractor, domestic employer legal responsibilities, nanny non-exempt employee, nanny independent contractor, nanny tax compliance, nanny job description
The Lamonica v. Safe Hurricane Shutters Inc. (11th Cir., 11-15743, 3/6/2013) ruling by the Eleventh Circuit Court confirmed that a worker's immigration status has no bearing on the worker's right to sue to recover unpaid overtime pay. The decision affirmed a lower court ruling in favor of the undocumented workers that awarded unpaid overtime and damages.
Topics: domestic employer legal responsibilities, nanny overtime
Nannies, housekeepers, elder caregivers, and most house managers are considered Hourly, Non-Exempt employees under the Fair Labor Standards Act. This means that most are covered under both minimum wage and overtime laws. Accurate and contemporaneous time tracking and records maintenance is a legal obligation!
Topics: time tracking, nanny hourly wage, domestic employer legal responsibilities
Families sometimes try to completely side step their employment tax obligations by giving the nanny a 1099 form at year end. In so doing, they avoid paying their share of Social Security and Medicare taxes, as well as unemployment taxes, and they push their tax obligations on to the nanny. This path allows the family the benefit of child care tax credits without the corresponding expense of paying their portion of the employment taxes.
Topics: nanny w-2 form, domestic employer legal responsibilities, nanny independent contractor, household independent contractor
Household employees - nannies, maids and housekeepers - and the families that employ them often don't understand how payroll tax, labor law, and the unemployment insurance system apply to this particular employment situation.
Topics: domestic employer legal responsibilities, nanny non-exempt employee, nanny overtime