Knowledge Center

Interest

• I hired a nanny. What about household employers workers’ compensation and disability insurance?

  SUMMARY: State insurance regulations determine when household employers workers’ compensation and disability insurance are required. The rules vary by state. We recommend meeting with a licensed insurance broker to review all of your insurance needs when you become a household employer. HWS has a licensed insurance partner who will provide HWS clients a no obligation… Read more »

• I Want to Net a Take Home Pay of $600 a Week. A Family Just Offered Me a Job, but Listed a “Gross” Pay Rate, What Does That Mean?

  Many household employees expect to negotiate a “net wage” or “net take home pay” agreement with their employer. The net take home pay agreement is an unfamiliar concept for many nanny employers, and often the new employer does not fully understand the financial implications of a net pay agreement with the employee. A lack of... Read more »

• Overtime Rules for Senior Home Care Workers

  Direct hiring of senior caregivers by families continues to increase, and families have questions about minimum wage, overtime rules for senior home care workers, and questions about what constitutes payable hours during the care day. Senior Home Care Overtime Law and Minimum Wage The Fair Labor Standards Act (FLSA) applies minimum wage and overtime rules… Read more »

• What may happen if I do not pay the nanny taxes?

  What happens if I don’t pay for my nanny taxes? Failure to report wages paid to a domestic service worker – including a nanny, senior caregiver, housekeeper and more – and failure to pay the nanny taxes compromises the validity of your personal income tax return. These taxes are included on your personal federal income… Read more »

• Is Health Insurance for My Nanny or Senior Caregiver Taxable?

  Many employers understand that key benefits such as employer paid health insurance is an important employee recruitment and retention tool. Is health insurance taxable? Household employers with fewer than 50 household employees may reimburse health insurance premiums obtained in the individual marketplace on a tax free basis utilizing either a Qualified Small Employer Health Reimbursement Arrangement... Read more »

• IRS Announces Penalties for Incorrect Forms W-2, Wage, and Tax Statement

  Household employers will incur significant incorrect Form W-2 penalties if there are name and Social Security number mismatch problems. The Social Security Administration returns incorrect forms W-2 (name and Social Security number mismatch problems) to employers for corrections. The Internal Revenue Service assesses penalties to household employers filing Forms W-2 with mismatched names and Social… 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 »

• What about tracking the nanny’s hours? What is required?

  Fair Labor Standards Act (FLSA) states that due to the nature of their work and duties, nannies and other household workers are employees, are hourly workers,  and are covered by minimum wage and overtime laws. The FLSA requires employers to maintain accurate and complete contemporaneous time records for tracking hours worked by an employee. When… Read more »

• How can I help my nanny build a retirement savings account?

  There are some practical ways an employer can help their nanny build a retirement savings account. The SEP-IRA Employers can set up a SEP-IRA to help build a retirement savings account for their nanny. The contributions are 100% funded by the employer. Sometimes employees will ask to ‘defer’ a raise and have the $50 or so… Read more »

• How to Write a Nanny Letter of Recommendation

  Our wonderful nanny will be leaving in September when our son begins full time school. How do we help her with a letter of recommendation? The nanny’s letter of recommendation from her former employer is an important part of her “Nanny Portfolio,” a collection of materials including her resume, work history, educational certifications, and examples… Read more »