2016 was a busy year in household employment. From Domestic Worker Bill of Rights legislation, stepped up enforcement of independent contractor misclassification and the implementation of Fair Labor Standards Act updates impacting in home senior caregivers and domestic worker overtime eligibility, the states and Federal governments have been busy in this arena.

Topics: domestic workers bill of rights, worker misclassification independent contractor, companionship exemption

Most Workers are Employees!

The US Department of Labor's Administrator of the Wage and Hour Division, David Weil, clearly stated on July 15, 2015 that most workers are considered employees under the Fair Labor Standards Act, as he issued new guidelines aimed at limiting the misclassification of workers as independent contractors.

Topics: worker misclassification, worker misclassification independent contractor, senior home care

It's been called the Silver Tsunami - America's 65+ demographic, which currently accounts for 13 percent of the overall population, is expected account for more than 20 percent by 2050  according to the U.S. Census Bureau. Three quarters of that population strong prefers and expects to age in place, remaining in their homes and communities as long as possible. Many families turn to senior home caregivers to help their loved ones remain independent in a safe environment, especially when non-medical support is called for.

Once the caregiver is hired, questions remain about how to handle the senior caregiver's payroll. Families turn to senior home care referral agencies, accountants and geriatric care managers for guidance. HWS has heard some remarkably bad advice on senior caregiver payroll, advice that when followed often comes back to haunt the senior or their family members.

Topics: worker misclassification, worker misclassification independent contractor, senior home caregiver, senior home-care workers

Hiring a nanny or a housekeeper to help you out at home, a personal assistant to keep you organized, a senior caregiver to help you out with your aging parents, a gardener, cook or any other household worker to whom you pay directly (more than $1800 in calendar year 2013, $1900 in calendar year 2014) and you control the way the work is done and how, makes you a household employer!

According to the IRS's Publication 926 household employers who pay a worker more than $1800 cash wages in a calendar year, are required to file payroll taxes. 

Topics: worker misclassification independent contractor, 1099 v w-2

HWS client care specialists field inquiries about worker classification - whether a household worker is an employee or an independent contractor - all the time.  Families call questioning whether they can treat their household employee as an independent contractor, provide them a 1099 Form instead of a W-2, and avoid the entire issue of payroll taxes.

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

The IRS is increasing its focus on improperly classified domestic workers, including those hired to as senior home care professionals.

An adult 18 years of age or older who works in your private home and to whom you pay more than $1900 in cash wages (as of 2014) per year is subject to payroll tax obligations.  Distinguishing between an independent contractor and an employee is crucial to remaining in compliance with IRS regulations.

Topics: worker misclassification, worker misclassification independent contractor, 1099 v w-2, household independent contractor, senior home care, senior home-care workers

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

Topics: worker misclassification independent contractor, domestic employer legal responsibilities, payroll tax enforcement

The Internal Revenue Service (IRS) and 11 states, as we reported in October 2011, have entered into information sharing agreements for purposes of employment tax enforcement. Virginia, apparently, is making a concerted effort to collect state unemployment taxes from employers known to the IRS, but not to the state.

Topics: nanny tax audit, nanny tax statute of limitations, worker misclassification independent contractor, payroll tax enforcement, nanny tax compliance

Topics: worker misclassification independent contractor, domestic employer legal responsibilities, new york household employment, california household employment