Hiring a Caregiver For a Loved One

Hiring a Caregiver For a Loved One The holidays are almost here, which means you’ll be spending a lot of time with your family, including your aging parents. So, when you are visiting them, you will have an opportunity to see how they are doing in terms of overall health, safety, and quality of life. If you notice any red flags that indicate your elderly loved one is unable to take care of themselves and their surroundings (disheveled clothes, poor hygiene, spoiled food, unpaid bills, etc.), it may be time for some additional assistance. Important Signs that Your Loved [...]

By |2023-04-19T14:17:47+00:00November 15th, 2019|Hiring|0 Comments

National Push for Nanny Rights Continues in Philadelphia

Continuing a national trend toward improving the labor conditions and wages of nannies, eldercare providers and other household and domestic workers, Philadelphia City Council recently passed a “domestic worker bill of rights”.  The legislation, passed on October 31, 2019, and expected to be signed into law by the mayor shortly, will take effect in May, 2020, and 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 [...]

By |2022-03-15T17:40:19+00:00November 6th, 2019|NannyPay|0 Comments

NannyPay is an Affordable and Easy Solution for Paying your Nanny

Easy Payroll Solution Keeping track of tax information while employing a nanny may appear at first to be overwhelming; however, paying your nanny taxes and staying legal is very important for protecting you, your family and your nanny and is not as complicated as you may think. If you have a nanny and you pay them at least $2,600 a year*, they are considered a household employee and according to the IRS you are responsible for paying employment taxes on their wages, which includes Social Security and Medicare taxes (commonly known as FICA)  You may also owe state and [...]

By |2023-04-19T14:20:23+00:00October 29th, 2019|NannyPay|0 Comments

I Can Do This!

NannyPay: DIY Payroll Since 1997, NannyPay remains the leading payroll software tool created by household employers for household employers. How Can NannyPay, a DIY Payroll, Help Me?  The new, next-generation NannyPay2 software continues the software's tradition of simplicity, but has been enhanced based upon our company's almost two decades of experience serving the household payroll market. NannyPay2 is feature-rich, yet simple to use. For example, NannyPay will calculate all federal and state withholding taxes for you, and then print a detailed pay stub you can give to your nanny each week. At year end, NannyPay will even print Forms W-2 and W-3 from [...]

By |2022-12-13T16:30:42+00:00September 19th, 2019|Nanny Tax|0 Comments

6 Steps To “Paying By the Rules” for Nanny Taxes

6 Steps To "Paying By the Rules" for Nanny Taxes STEP 1: Determining Your Household Employee's Employment Eligibility STEP 2: Registering with the IRS and State Revenue Departments STEP 3: Determining How Much You Must Pay Your Household Employee STEP 4: Determining What Taxes You Must Withhold STEP 5: Learning About Your Other Obligations STEP 6: Filing Reports and Paying the Government

By |2022-08-31T18:26:50+00:00September 12th, 2019|Nanny Tax|0 Comments

Registering with the IRS and State Revenue Departments

Registering with the IRS as a Household Employer Once you have verified that your household employee can legally work for you, your next step is to register with the Internal Revenue Service (IRS) as a Household Employer. You do this by completing Form SS-4 and sending it to the IRS. The IRS will then assign you an Employer Identification Number, or EIN. An EIN is the number used to identify you as an employer, and will be placed on all your tax filings as an employer much like your Social Security number is used to identify you as an [...]

By |2022-12-13T16:13:54+00:00August 22nd, 2019|Nanny Tax|0 Comments

Determining How Much You Must Pay Your Household Employee

Paying your Household Employee Although the issue of compensation is generally between you and your household employee, the government sets certain minimum standards. The Federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record keeping, and child labor standards affecting some full-time and part-time workers in the private sector. Domestic service workers such as full-time nannies, babysitters, housekeepers, chauffeurs, and cooks are covered by the FLSA if (1) their cash wages from one employer are at least $2,600* in a calendar year (or the amount designated pursuant to an adjustment provision in the Internal Revenue Code), or [...]

By |2023-04-19T14:21:42+00:00August 15th, 2019|Nanny Tax|0 Comments

Determining What Taxes You Must Withhold

Withholding Household Employee Taxes If your household employee will earn $2,600* or more per year, you must withhold Medicare and Social Security taxes, commonly referred to as FICA. If you will pay your household employee $2,600* or more this year in gross wages, you are required by federal law to withhold and pay Social Security and Medicare taxes, which are sometimes collectively referred to as FICA taxes. One half of the total FICA tax you owe the government is withheld from your household employee's wages. NannyPay will automatically calculate the correct amount of FICA withholding.  You will pay your [...]

By |2023-04-19T14:22:27+00:00August 8th, 2019|Nanny Tax|0 Comments

Learning About Your Other Obligations

Important Tax Forms and Tax Dates for Household Employers By no later than January 30th, you are required to give a Form W-2 ("Wage and Tax Statement") to each household employee you hired the previous year. Form W-2 consists of several lettered and numbered copies. Copies "B", "C" and "2" are for your employee. Refer to our tax forms blog for the complete list of household employer forms.  Remember, you are required to give each employee to whom you paid wages the previous year a Form W-2, even if they no longer work for you. If your employee leaves during [...]

By |2022-12-13T16:52:12+00:00August 1st, 2019|Nanny Tax|0 Comments

Filing Schedule H, Reports and Paying the Government

Filing Schedule H and Paying the Federal Government Typically, household employers are required to report to the federal government once a year at tax time (April 15th) by filing a Schedule H (Household Employment Taxes) with their own income tax returns. The Schedule H lists the federal employment taxes you withheld or owe for the relevant tax year. Employment taxes may include FICA, and federal income tax withholding, your employer's share of FICA, and your Federal Unemployment Tax (FUTA) liability. You add all your employment tax liability reflected on your Schedule H to your Form 1040 or 1040A, and pay [...]

By |2022-03-15T18:42:10+00:00July 25th, 2019|Nanny Tax|0 Comments