Knowledge Center
Interest
Why Aren’t Arizona State Taxes Withheld from My Paycheck?
Arizona does not allow withholding to be deducted or retained from wages paid for domestic service in a private home. This does not mean that AZ income taxes are not due on these wages, it simply means the employer is unable to withhold and remit them for their household employees. If my employer cannot withhold my […]
Why You Can’t Guarantee Your Nanny Net Pay
If you’ve recently hired a nanny and agreed to compensation based on take-home pay (net pay), you may have noticed getting a consistent cost of payroll is more challenging than you anticipated. Here are some reasons you can’t guarantee your nanny the same net pay every time. Income Fluctuation Your nanny is an hourly employee by law, which means […]
Are you a household employer?
What Your Family Needs to Know… At HWS, we are experts on the tax and labor laws surrounding household employment, so you don’t have to be. Let’s first determine whether YOU are a household employer. Our knowledge center goes into much more depth on the details, here it is short and simple. Our lives are busy, […]
I’m Working a Nanny Share Job, Does Having Two Bosses Change Anything with My Payroll and Taxes?
Does having a nanny share job change my payroll and taxes? When you work in a nanny share arrangement with two families, both families become employers. Presuming that each pay you for the work performed for their individual family, each employer is responsible for withholding nanny share payroll taxes and the periodic remittances of payroll taxes. […]
Prevailing Wage for A-3 and G-5 Domestic Workers
NOTICE: Effective March 8, 2016 the 9 FAM 402.3-9(B)(4) notes have been updated to reflect a change in wage requirements for G-5 domestic workers, as well as A-3, B-1, and NATO-7 domestic workers. Effective immediately, all contracts for domestic workers must state an hourly wage to be paid to the domestic worker, and the rate must […]
Senior Caregiver Hiring: Employee or Independent Contractor
The IRS is increasing its focus on improperly classified domestic workers, including those hired as senior home care professionals. As an employer of a household employee, you must be aware of these changes for tax season. Misclassifying a household employee as an independent contractor can expose the household employer to multiple risks. An adult over […]
U.S. Department of State Regulations: A-3 and G-5 Domestic Servant
The U.S. Department of State allows aliens who are diplomats, staff of certain international organizations (often referred to as NGOs or Non-Governmental Organizations), and NATO staff to bring into the United States their servants, personal attendants and other domestics provided certain conditions are met. The US Department of State’s Foreign Aid Manual (9 FAM §41.21, […]
Hotline Set Up in New York to Help Nannies and Housekeepers File for Unpaid Overtime
Efforts by workers’ rights groups to educate about New York’s Domestic Workers Bill of Rights have resulted in a big uptick in unpaid overtime claims filed against household employers. Advocacy groups are actively canvassing New York City neighborhoods – in playgrounds and grocery stores and other places where nannies and other household employees are likely […]
I have someone working in my home. What taxes do I need to pay?
In general, the Internal Revenue Service requires payroll tax filings by a domestic employer (household employer) who pays a housekeeper or other household employee more than $2,800 cash wages (2024) in a calendar year*. These payroll taxes are collectively referred to as “nanny taxes”, although as a practical matter these employment taxes are applied to […]
Is my nanny an “Independent Contractor?” Can I do that?
https://youtu.be/GhJ-J3-Ce6s 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 workers are considered employees under […]