In the modern economy, more and more households are hiring domestic help, whether it's a nanny, caregiver, or housekeeper. These household employees play a crucial role in keeping our lives running smoothly, and it's important to recognize their dedication and hard work. One effective way to show appreciation and also maximize tax savings for you, and your employee, is by offering a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) or an Individual Coverage Health Reimbursement Arrangement (ICHRA).

Topics: nanny agencies, senior care, nanny, nanny tax, household payroll tax, nanny benefits, household independent contractor, household payroll, agency, senior, CPA

On June 9th, 2022, the IRS announced that the tax-free mileage reimbursement limit will be increased to 62.5 cents ($0.625) per mile, effective July 1 through December 31, 2022.  This increase of $.04 per mile is in recognition of recent increases in gasoline prices nationwide.

Topics: senior care, nanny, nanny tax, nanny benefits, CPA

If you recently hired a household employee, you know that you have employment tax obligations. One of those is to pay Federal and State Unemployment Insurance tax. This benefit program is confusing to most, so here we will break down some essential things to know about it.

Topics: nanny w-2 form, household employee taxes, nanny undocumented, nanny unemployment insurance, nanny payroll, nanny benefits, W-4, pandemic

Are you considering hiring a nanny? As a household employer, paying your nanny a fair wage is essential. While you may not be required to offer paid vacation, health insurance, paid sick time, or retirement savings plans, offering some benefits is important. Benefits can help you attract and retain the best nannies in the industry. In addition, it helps your nanny avoid exhaustion or burnout. So, while you are considering your nanny's employment details, make sure you think seriously about what it takes to provide a good benefits package. 

Topics: nanny employment practices, nanny, nanny payroll tax, nanny health insurance, nanny benefits, household payroll

As an employer, you want to make sure your nanny feels valued and appreciated, so in addition to paying her a fair wage, it’s great to consider some additional benefits that you could provide that are tax-free. Household employees are eligible to receive non-taxed benefits and reimbursements, but some do have limits and procedures associated with them. Here, we will provide a few options for non-taxed benefits that you may be able to provide.

Topics: nanny, nanny benefits, agency, CPA

Paid sick leave is an important benefit of any job.  Nannies or senior caregivers often show up for work when they are ill because they cannot afford to miss a days' pay. People in these professions will be glad to hear that the Montgomery County (MD) Council recently joined other localities in providing paid sick leave as a mandated employee benefit after a unanimous vote. (1) It will work as a tiered-system that would provide four days paid sick leave and three days of unpaid leave for employers that have 5 or fewer employees.

Topics: nanny benefits

April 2015 Update

The survey referenced below is now closed and published. HWS encourages you to review the results.

The INA reports the following:

 

Key findings include:

 

• Average hourly rate USD$18.66, $1/hour increase from 2012
• 49% have had a salary increase in prior 12 months, up from 38% in 2012
• Education and experience correlate with higher hourly wage
• 60% received an annual bonus in 2013, up from 53% in 2011
• INA Credentialed nannies average $19.96 per hour
• 64% are paid legally

Topics: nanny salary, nanny benefits

Did you know that household employers are not legally obligated to pay for ANY holidays or time off to their employees*?  It is entirely up to the employer to decide if such a benefit will be offered or not.  Clearly this is something that should be discussed when interviewing, and memorialized in a written work agreement. We know from experience this is a big concern for household employees. In some situations, applicants will even choose one job over another based on the holiday and paid time off in the job offer.

Topics: housekeeper, maid, nanny paid time off, nanny benefits, nanny work agreement

The American Taxpayer Relief Act of 2012, passed by Congress this January 1, included some substantial good news for employees whose employers supplement their public transportation expense.

Topics: housekeeper, maid, nanny benefits

Household employers are not legally obligated to pay for ANY holidays or time off. It is true, however, that some baseline provision of paid holidays is a general expectation of household employees. Many nannies, especially those working without a written work agreement in place, worry about their income during the busy holiday season. Will they receive pay on holidays? Will they be paid for those regular days when they are not needed due to holiday travel or entertainment?

Topics: nanny paid time off, nanny benefits