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 […]
Hiring families may have questions about the Social Security Number trace they receive as a result of the pre-employment background check order they run on their nanny, housekeeper or care giver candidate. The following FAQ about the SSN trace will assist in interpreting the report. What is a social security trace? A social security trace […]
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 […]
Household employers file and pay the exact same employment taxes as commercial employers do. The IRS established the Form 1040 Schedule H in 1995 to simplify and streamline the household payroll tax reporting. Often times, however, the household employer or their CPA are confused about the proper reporting and begin filing quarterly form 941 for […]
Nanny payroll taxes, what are they? First it is important to understand the so called “nanny taxes” apply to ALL household employees, not just nannies. Your household employee (nanny, housekeeper, senior caregiver, etc.) contributes to or pays: Social Security & Medicare Taxes (via payroll deduction) Employee Disability/Unemployment Taxes where required. Federal/State Income Taxes The employer […]
Nanny tax rules, household employee rules, wage and hour law, and payroll tax requirements are governed by a complex assortment of Federal and state rules and legislation. HomeWork Solutions has assembled easy to understand, state specific tip sheets to save you hours of online research! COVID-19 Update: Through 31 December 2020, the federal government requires […]
Understanding the Social Security Taxes and Tax Totalization Plans HomeWork Solutions has many years of experience providing payroll and tax services to employer’s with domestics working in the US on a G-5 Visa. These employers and their G-5 domestics often have questions about Social Security Taxes for G-5 domestics. The following are general guidelines that […]
Many families find that paying for their nanny’s or senior caregiver’s public transportation pass is a great tax free benefit. Because this is non-taxable, you can provide this nanny transportation allowance without having to pay FICA or unemployment taxes on the value! For 2025, an employer may reimburse the nanny or senior caregiver for mass/public […]
