Household Employees: Understanding the Rules
If you employ domestic workers like nannies, housekeepers, senior caregivers, private chefs or other in-home staff, it’s important to understand your responsibilities as a household employer and properly classify workers as household employees vs. independent contractors. Determining Employee vs Independent Contractor The Department of Labor recently updated its guidance on classifying workers, looking at factors… Read more »
The Ultimate Nanny Tax Checklist for Household Employers in 2024
Congratulations! You are a household employer. Here's your ultimate nanny tax checklist. As a household employer, staying compliant with nanny tax rules is crucial in 2024 and beyond. When you become a household employer you also have payroll tax and reporting obligations, the so-called nanny taxes. The family, and not the nanny, is ultimately responsible... Read more »Is my nanny an “Independent Contractor?” Can I do that?
Is My Nanny an Independent Contractor? Is my nanny an independent contractor? Can I give my nanny or senior caregiver a 1099 and let her file her own taxes? 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... Read more »Why is my nanny an hourly employee? I want to pay her a salary and not worry about tracking hours each week.
Nannies and other ‘domestic service employees’ are classified under the Fair Labor Standards Act (FLSA) as non-exempt workers. The term non-exempt employee refers to a worker who IS subject to the terms of the FLSA regarding such issues as overtime compensation and minimum wage coverage, contemporaneous time tracking record keeping, as well as nanny pay… Read more »
Do I need to pay my housekeeper or nanny overtime? What about nanny minimum wage?
The simple answer is yes. Domestic employees specifically are covered by the Fair Labor Standards Act (FLSA) and have been since 1974. The FLSA establishes: The rules for workers who may be salaried (exempt) and who must be paid overtime (non-exempt). The rules for workers who must be paid no less than minimum wage. State… Read more »
How are the nanny’s (employee’s) payroll taxes paid?
Our Ultimate Guide to Nanny Payroll Taxes Requirements Whether your nanny works full-time, part-time or lives with your family, the odds are likely that in the eyes of federal and state governments, they are an employee of your household. That means that you, as the nanny's employer, need to make sure that you're following state,... Read more »Do I have to pay payroll taxes for the cleaning lady that comes weekly?
Video: Cleaning Lady...Employee or Independent Contractor? Is a regular cleaning lady subject to the nanny taxes? Is the cleaning lady or housekeeper a household employee? Any individual whom you employ to provide services in your home whom you pay directly AND whose total payments in the calendar year meets the IRS household employment threshold, $2,700... Read more »Great Options for Nanny Health Insurance Benefits
More and more we’re getting nannies asking about how to get health insurance built into their compensation packages; we’re realizing many more employers asking how they can help with nanny health insurance benefits, too. That’s fantastic! Just knowing how to go about doing it is where things get confusing. Let's consider the question: what's a... Read more »How frequently do I need to pay my household worker? My nanny wants to be paid weekly. Do I need to do that?
The pay frequency of a nanny or senior caregiver (and all hourly, non-exempt employees) – the maximum interval between wage payments to the worker – is governed by state law. Nanny pay frequency regulations are summarized below. Payroll calculations for your household employee (nanny, housekeeper, maid, senior caregiver, etc.) are governed by the Fair Labor Standards Act…. Read more »
Do I need to hire a U.S. citizen to be our nanny or dad’s caregiver?
SUMMARY: You may legally hire a U.S. citizen, an alien lawfully admitted for permanent residence, or an alien with a valid work permit. You are required to verify your candidate's employment eligibility using » Form I-9. Aliens with a valid work permit are eligible for and should have a valid Social Security Number. It is... Read more »
