Do You Owe The Babysitter Tax?

Paying someone to watch your child may seem like a routine affair, but technically you probably become an employer the moment you hire babysitting services in your home. While there are exceptions for sitters under 18, babysitters can legally be seen as employees. This means you might owe babysitter taxes to the government. Babysitter Tax Threshold for 2022 The babysitter tax threshold for 2022 is $2,400, which represents a $100 increase over the previous year. In simple words, if you pay a babysitter (age 18 or older) at least $2,400 in cash wages in 2022, the family and the sitter [...]

By |2022-06-14T17:54:05+00:00June 1st, 2022|Nanny Tax|0 Comments

The Ultimate Nanny Tax Guide

What is the “Nanny Tax”? Hiring the “right” nanny or other household employee can be a difficult task. Although finding a trustworthy, competent employee will be your top priority, families who choose to hire their own household help will also need to understand the "nanny tax". The nanny tax is a federal tax paid by people who employ household workers and pay wages over a certain amount. The 2022 nanny tax threshold is $2,400, which means if a household employee earns $2,400 or more in cash wages this year, Social Security and Medicare taxes must be paid by the employee [...]

By |2022-04-05T15:45:57+00:00April 5th, 2022|Nanny Tax|0 Comments

Going Back to Work Post-Baby? Tips for Finding the Perfect Nanny

Heading Back to Work Post-Baby As a new parent, it can be difficult preparing to go back to work after the arrival of your baby. Eventually, the time comes when you have to go back into the office, or for those working remotely, log back on and sit through Zoom meetings for a majority of your days.  Whether you are commuting into the office or working from home, having an extra set of hands is always a good idea to make sure that your child is getting the proper care they need, even if you can’t be available all the [...]

By |2022-08-30T19:56:44+00:00January 19th, 2022|Tips|0 Comments

Preparing to Hire a Nanny in 2022?

According to a 2021 report from the Bureau of Labor Statistics, in married- couple families with children, 95.3 percent had at least one employed parent in 2020, and 59.8 percent had both parents employed. With over half of American households having two working parents, childcare is in demand.  You’ve considered all of your options, but realizing that you are looking for childcare that is flexible enough to work around your schedule, provides individual attention, and can take on some additional responsibilities, like shuttling your children back and forth from activities, you’ve decided your best option is to hire a nanny.  [...]

By |2022-02-21T21:57:15+00:00December 15th, 2021|Nannies|0 Comments

June Just Got Tastier

National Veggie Day It’s time to eat up! June 17th is National Eat Your Veggies day. What’s a summer BBQ without corn on the cob, a side of potato salad, freshly roasted asparagus and a slice of juicy watermelon? Rich in vitamins, minerals and nutrients, research has shown that people who consume fruits and veggies as part of their daily diet are likely to have a reduced risk of some chronic diseases such as heart disease, and are more likely to be protected against certain types of cancers. Fruits and veggies are naturally low in calories, many are high in [...]

By |2022-05-10T19:22:56+00:00June 13th, 2021|For Kids, Tips|0 Comments

Philadelphia’s Domestic Worker Bill of Rights Becomes Effective this Month

Philadelphia’s new Domestic Worker Bill of Rights became effective on May 1, 2020. Domestic workers include nannies, house cleaners, caregivers, and others who provide services in the home.  Philadelphia’s new law, passed on October 31, 2019, requires among other things that nannies, house cleaners, and other household employees be provided a written agreement expressly outlining the terms of their employment, such as pay rates, work schedules, and benefits.  The new law also guarantees that nannies and other in-home workers accrue paid leave and sick days even if they work for multiple employers.   Although the City was unable to set [...]

By |2022-08-30T19:50:07+00:00May 4th, 2020|Nannies|0 Comments

Lessons Learned During COVID-19

The COVID-19 pandemic has caused widespread economic disruption, apart from the health challenges that we are still struggling to control. While businesses and employees across different sectors have been badly affected, one of the worst hit segments are the undocumented household workers.  Many families across the country have hired nannies without going through proper documentation to avoid paying the “nanny tax”, immigration laws, and other formalities. Household workers accepted those jobs without considering the unforeseen eventualities such as the coronavirus crisis.  Now thousands of such employers have laid off their household workers because they are concerned about maintaining social distancing, [...]

By |2022-08-31T17:49:57+00:00April 27th, 2020|Nanny Tax|0 Comments

Your Nanny and the Global Pandemic

In a recent New York Times article, “What Should You Do About Your Babysitter During Coronavirus?”, the author, Melinda Wenner Moyer, describes the chaos suffered by working parents during the coronavirus lockdown. She raises important questions: If you’re practicing social distancing, is it OK to invite a babysitter into your home? Should you be offering your sitter time off — and if so, should it be paid or unpaid? What if you’re worried that your caregiver might get your family sick? It's only natural to worry about our children, she states, but for reassurance, available statistics demonstrate that the majority [...]

By |2022-03-15T17:30:10+00:00March 31st, 2020|Nannies|0 Comments

2020 Tax Filing Deadline Extension

Following President Donald J. Trump’s emergency declaration pursuant to the Stafford Act due to the COVID-19 outbreak, the U.S. Treasury Department and Internal Revenue Service (IRS) have extended the April 15, 2020, individual federal tax filing deadline to July 15, 2020.   Individual taxpayers may also defer payment of up to $1 million of federal income tax due on April 15, 2020, until July 15, 2020 as well, without penalties or interest.   As most household employers report and pay their federal Nanny Taxes by completing Schedule H and attaching it to your Form 1040, this action effectively  gives domestic employers of nannies, [...]

By |2022-08-30T19:56:55+00:00March 30th, 2020|Nanny Tax|0 Comments

Foreign Au Pairs in Massachusetts Must be Paid at Least The State Minimum Wage

A federal appeals court has reaffirmed that residents in Massachusetts are required to pay foreign au pairs (such as live-in nannies and maids) at least the state minimum wage, and not the lower  federal minimum wage. With this court ruling, anyone who hires the services of a foreign au pair in Massachusetts will have to pay them a minimum wage of $12 per hour (state minimum) rather than $7.25 per hour (federal minimum).  This ruling came when the federal appeals court dismissed a lawsuit filed by Culture Care Au Pair of Cambridge, which challenged the state Attorney General Maura Healey’s [...]

By |2022-08-31T17:25:43+00:00December 1st, 2019|Tax FAQ|0 Comments