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

1. A typographical error. 

Topics: nanny w-2 form, nanny income tax

HWS' Client Care Manager, Mary Crowe, shares the story of a client who issued her nanny a 1099 form, and later found herself on the wrong side of the IRS.

Our client, Linda M. came to us when her relationship with her nanny was in crisis over taxes. Linda lives in New Jersey and she hired her nanny in the fall and was paying her in cash every week. She has an accountant to handle her income taxes, and when she hired the nanny her accountant told her that everyone treats their nanny as an independent contractor.

Topics: nanny w-2 form, worker misclassification, 1099 v w-2

Can you believe another year has flown by already?  And 2014 is right around the corner …

HomeWork Solutions wants to help you stay ahead of the game by summarizing important deadlines and considerations before you get caught up in the holiday festivities.

Topics: nanny w-2 form, nanny tax, nanny wage

Nannies are employees of the families they work for. They are not independent contractors, whether the family or nanny wants to be or not.

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

The SSA has recently resumed sending DECOR notices, commonly referred to as "No Match Letters" to employers when the name and Social Security Number on a form W-2 do not agree with the SSA's records.

Topics: nanny w-2 form, Social Security no match letters

Topics: nanny w-2 form, nanny e-verify

Topics: nanny w-2 form, nanny income tax, nanny tax