How do we handle nanny share payroll taxes with another family?
When you share a nanny with another family, both families become employers. Presuming that you each pay the nanny for the work performed for your individual family, each employer is responsible for withholding nanny share payroll taxes and the periodic remittances of payroll taxes. Nanny share payroll taxes can be confusing, especially if you are… Read more »
What are my tax responsibilities with a temporary nanny? She only worked for us for six weeks while my wife was on bed rest.
Many families hire temporary nannies or other temporary household workers and have many questions about their financial and legal responsibilities. Examples include the temporary nanny who is working while the mother is on bed rest, the respite senior caregiver staying with an aged family member while you are away for work or vacation, or the… Read more »
Why Professional Nannies Want to be Paid Legally
In the “nanny world,” the temptation to accept a job that pays CASH (off the books, no payroll or income tax reporting) is faced by every nanny. After all, who LIKES to pay taxes? Professional nannies, however, understand nanny tax compliance and know that being paid legally is ultimately in their own best interest. Unemployment... Read more »
Nanny Reference Checking: How and Why
The nanny candidate has just left your home. The meeting went very well. You felt a connection, an instant bonding. You think, “Hurrah! I found the perfect nanny for my family!” You are ready to make an offer — or are you? Whoa! Stop right here! Never make an offer to any candidate without checking… 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 »
My nanny or caregiver is not a legal resident. What should I do about employment taxes for undocumented nanny?
The Internal Revenue Code maintains that the immigration status of your nanny or other employee has no bearing on your obligation for nanny employment taxes. Immigration enforcement is focused on penalizing the EMPLOYERS - particularly prosecution for employment tax fraud. Employing an undocumented worker is a violation of immigration law. The employer's risk here is... Read more »
Can I hire a nanny who has a F-1 (J-1) Student Visa. Are there special rules?
SUMMARY: Since 1994, off campus work (including work in a private home as a nanny, SENIOR CAREGIVER, housekeeper, maid or other domestic work) is generally prohibited for J-1 or F-1 student visa holders. HomeWork Solutions’ clients may choose to hire a foreign nanny and have their employment eligibility verified using the DHS e-Verify program, also... Read more »
Our former nanny applied for unemployment benefits? Will she get them?
The working arrangement between a nanny and the family is considered employment at-will under US common law unless the written work agreement specifies a term of contract (which is a horrible idea). In broad terms, at-will employment means that employment is presumed to be voluntary and indefinite for both employees and employers. A nanny under... Read more »
What payroll taxes does a nanny, or other household employee, pay?
Nanny payroll taxes, what are they? First it is important to understand that the so called “nanny taxes” apply to ALL household employees, not just nannies. The proper collection and remittance of payroll taxes protects the employer and the employee from the possibility of penalties and interest associated with unpaid back taxes. The employer is... Read more »
What is a wage garnishment order?
Most of our nanny and senior care employers are unfamiliar with wage garnishment orders and the implications and responsibilities they have in relation to the order. A wage garnishment order is a court order which requires that some portion of an employee’s earnings be withheld by the employer for the payment of a debt. Most… Read more »