HWS' Client Care Manager, Mary Crowe, shares the story of a client who paid the nanny cash under the table, and later found himself on the wrong side of his state's unemployment agency.

Mike and Joyce R. hired a nanny when their twins were infants. They agreed with the nanny at the time that they were going to pay her $500 a week off the books. The nanny worked out wonderfully and she stayed with Mike and Joyce for almost three years, and was let go when the twins started a full-time pre-school/daycare situation. The family’s needs had changed, and they found another very part-time nanny to cover the afterschool hours.

Topics: nanny off the books, nanny unemployment insurance, nanny taxes, nanny tax case study

I recently attended Nannypalooza in Philadelphia where I was asked by a nanny in attendance if I could coach her on how to speak to her employer about being paid on the books. Immediately several other nannies joined the conversation, sharing that this is one of the most difficult conversations to initiate with their employers.

Topics: nanny off the books, nanny job satisfaction, nanny taxes

School is out, and families nationwide are turning to summer nannies to provide safe, individualized caregiving for their young children over the summer holidays.

Topics: nanny payroll, summer nanny, nanny taxes

Regardless of whether your household employee is full time or part time, employers are required to pay employment taxes if the employee is paid $1900 or more per year (in 2014).

Topics: household employee, household employer, nanny taxes, 1099 v w-2, household payroll tax, household payroll

With compliance rates hovering around 10-20%, many household employers are only now beginning to seriously consider the costs and risks related to paying nannies and other household workers "on the books." While filing and paying taxes on household employees brings with it additional costs and paperwork, more families are recognizing the merits of filing as employers, and helping household workers with income tax withholding.  

Topics: household employee taxes, nanny payroll, nanny tax, nanny taxes

The early bird really does get the worm, according to a recent article featured on The Motley Fool, a multimedia financial-services company that reaches millions of people each month through its website, books, newspaper column, television appearances, and subscription newsletter services. Author Jim Staats of Manilla.com reports that it’s never too early to prepare the necessary paperwork before the April 15th deadline; in fact, there are several ways that he suggests you can try to lower your tax bill each year:

Topics: filing taxes, tax return, nanny taxes

The Internal Revenue Service issued new 2014 income tax withholding schedules and they are fully integrated with our online tax calculator now. We are fielding a lot of inquiries about new paycheck amounts and will try to address the common questions here:

Topics: nanny, nanny tax, nanny taxes, household payroll tax

Don’t be stuck in fear ! We are here to help you! 

I have told many of our clients that they are not the first person that we have helped when they were behind on their nanny taxes. I tell them that because it’s true!

Topics: household employee taxes, W-2, nanny payroll tax, nanny tax, nanny taxes

Topics: household employee, worker misclassification, independent contractor, nanny tax, nanny taxes, 1099 v w-2

This past year, shocking headlines of arrest, strip-search of Indian diplomat overshadow alleged mistreatment of her nanny.

Foreign diplomats and foreign staff members of the United Nations and other "Non-Governmental Organizations" associated with the UN are permitted under US law, as a courtesy, to bring their foreign domestic service workers to work in the United States. These foreign domestic service workers are employed as nannies, maids, housekeepers and senior caregivers. The US State Department imposes strict rules that the foreign diplomat must agree to, contractually, with the domestic worker that governs their employment in the United States as part of the visa application and issuance.

Topics: foreign domestic workers, G5 domestic, GV domestic, nanny taxes