As a family with household employees like a nanny, private senior caregiver, housekeeper or other domestic workers, you may be eligible for several tax deductions related to their employment costs. Taking advantage of these nanny tax deductions for household employers can provide substantial tax savings. Dependent Care Account If your family has a Dependent Care… Read more »
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 $2,700 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… Read more »
Senior caregivers are hourly employees under the law. Housekeepers and senior caregivers who are not “companions” are classified under the Fair Labor Standards Act (FLSA) as hourly employees entitled to minimum wage and overtime (non-exempt). The term non-exempt employee refers to a worker who IS subject to the terms of the FLSA regarding such issues… Read more »
Household employee workers’ compensation insurance protects the caregiver and the employer from the expenses and liabilities associated with a work-related accident. A single accident can leave the household employer liable for thousands of dollars in medical bills. Don’t assume that this liability is covered under your Homeowner’s Insurance Policy! Last updated June 28, 2024 Most… Read more »
Considering hiring a family member as a caregiver for in-home care– whether for a baby or an aging senior? Families often engage a family member to provide elder care services and wish to fairly compensate them for their work. For more information on the rules governing hiring a family member as a caregiver, consult IRS… Read more »
Our aging parents deal with physical and sometimes mental declines that challenge their ability to completely take care of themselves on their own. They don’t like the idea of moving out of their homes to a senior care facility. How will they safely age at home, in a safe and happy environment? Today an estimated… Read more »
Many wonder how to pay nanny taxes and how often to file. Understand that the federal and state filing schedules are NOT synchronized. Additionally, not all states have the same reporting schedule. Federal Employment Taxes: Employers of domestic workers must, at a minimum, make annual payments for Social Security, Medicare and Withheld Income Tax (if… Read more »
