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 »
I gave our nanny a $2000 holiday bonus. Do I have to report the nanny bonus as wages, and will there be a tax on bonus payments? A nanny bonus payment IS considered taxable wages. “Wages” are defined by the IRS as all remuneration paid, including the cash value of all remuneration paid in any… Read more »
Whether the nanny is fired (involuntary separation, termination or discharge) or resigns (quits) voluntarily, state rules define how quickly the employer must give the final paycheck. Below is a state by state summary of separation payment rules as they apply to household employees.* May 2019 You MAY NOT withhold the final paycheck pending the return… Read more »
The U.S. Department of State allows certain non-immigrant aliens and US citizens to bring into the United States their servants, personal attendants and other domestics provided certain conditions are met. The B-1 domestic worker visa allows currently employed (no less than 6 months) domestic employees to accompany their employers who are moving temporarily to the… Read more »
Your relationship with your nanny family is strained and when they come home on Friday they tell you they no longer need your services. Things are going well, but your nanny family gives you two weeks’ notice that they have decided to put their 4 yr old into preschool. You can’t help but think to… Read more »
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…. Read more »
States use a Wage and Benefit audit for many purposes. The state may be checking on taxpayer subsidized benefits that the worker is receiving such as Medicaid for a dependent child, or on the veracity of information the employee has previously provided for purposes of child support enforcement, wage garnishment for tax delinquencies, etc. The state will… Read more »
The nanny tax wage test, the minimum amount of wages paid that obligates the household employer for household employment taxes, is $2,700 of wages paid to an employee in the year 2024 (or $1,000 paid total in a calendar quarter for FUTA tax). HomeWork Solutions, Inc., May 2024 Nanny tax legislation enacted in 1994 dramatically… Read more »
