Considering a Nanny Payroll Service?
Nannies and nanny employers pay the exact same taxes as other businesses. How hard can this be?
Many a household employer with a nanny, senior caregiver or housekeeper has been surprised by the unforeseen complexities of household payroll. Even accountants and CPAs get it wrong sometimes. Before you engage a nanny payroll service, consider the following questions:
1. How much experience do you have with nanny payroll?
HomeWork Solutions has been providing nanny payroll services to families nationwide since 1993. We have worked with tens of thousands of employers, in all types of household employment scenarios. HWS can help you understand the different rules that apply to nannies that live in your home, the difference between senior care and companionship care, and even what the domestic workers bill of rights laws are in your state.
We know the difference between a Schedule H and a 941 filing. We can help you understand the difference between a household employee and an independent contractor.
Ask about these issues – and make sure you get complete answers!
2. What are my state filing requirements for my nanny payroll?
Many accountants and CPAs can help you with a Federal Form Schedule H at the end of the year. Ask them about their support for your state filings too – these are often due quarterly, and sometimes monthly. Wait until the end of the year and you will find yourself paying penalties and interest for these overdue filings. What support do they provide all year round?
3. How frequently do I need to pay my nanny? Can I pay her a salary? What about overtime?
It’s not as simple as it sounds. Both state and federal regulations come to play here, and a complaint by a disgruntled former employee can cost you thousands. HWS nanny payroll service specialists have the answers at their fingertips. After all, household payroll is all we do.
In our experience, the penalties and interest associated with incorrect payments and / or late filings often costs more than the fee for a service provider.
4. What support do you give me? What happens when I have a question?
Accountants and CPAs are fantastic resources, deeply knowledgeable in the ins and outs of personal income tax issues. They work long hours during their busy seasons, and may not always be instantly accessible. HomeWork Solutions nanny payroll service specialists are available weekdays all year round, from 8:30 am – 7 pm EST. In this age of increasingly automated, impersonal customer service, HWS still answers the phone with a live person every time. You can of course email or digitally “Chat” with our team if you find this easier, but you will never hear a phone tree directing you to press 1 for this or 2 for that.
5. How do you work with my accountant to help with my annual tax returns?
HomeWork Solutions nanny payroll service complements the professional services of your accountant or CPA, we don’t compete with it. At the end of the year we provide you with a one page summary of your household payroll details and a completed Schedule H so you can hand this off to your accountant effortlessly. You may even authorized HWS to speak directly with your accountant and many of our CPA referral partners have a direct website log in for access to their clients’ forms and schedules – multiple clients in one centralized portal.