Is That Household Payroll Service Putting You at Risk?

Third Party Software and Personal Data Risks Using a third-party payroll service may be convenient, but in addition to being a costly alternative to doing it yourself, household employers should be aware that the primary responsibility to protect their employee’s personal information and data still rests on them. Use of third-party payroll service providers complicates payroll data security because employers, regardless of their own efforts to safeguard their employee’s data, might still need to respond to an identity theft issue caused by their payroll service’s insufficient security measures, according to an IRS special agent with the Service’s Criminal Investigation [...]

By |2023-08-24T16:32:01+00:00July 5th, 2016|NannyPay, Tips|0 Comments

“Sleep Time” Rule Clarified for Home Care Workers

No Time for Snoozing The federal Labor Department recently clarified when home care providers may apply the Fair Labor Standards Act (FLSA) sleep-time exclusion since the FLSA’s minimum wage and overtime protections were extended to home-care employees late last year. For example, the original sleep-time rules allowed employers to exclude sleep time from an employee’s compensation provided the parties had made a prior reasonable agreement to do so. As now applied to home care, a reasonable agreement means the worker “regularly has the opportunity to sleep overnight, rather than if the employee is present to actively provide around-the-clock care” [...]

By |2023-08-24T16:32:11+00:00July 3rd, 2016|NannyPay Updates, Tips|0 Comments

“New Hire” Reporting

An Important Tool to Help Needy Children The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, commonly known as Welfare Reform, requires all employers to report certain information on their newly hired employees to a designated state agency. In Pennsylvania, for example, this law is administered by the Center for Workforce Information and Analysis, which is a division the PA Department of Labor. New Hire reporting is a process by which you, as a household employer, report information on newly hired employees to the designated state agency shortly after the date of hire. As an employer, you [...]

By |2023-08-24T16:32:20+00:00June 30th, 2016|Hiring|0 Comments

Important Overtime Rules for Preschool Instructors

Childcare Workers Who Provide "Preschool" Instruction Are Not Exempt From Overtime Pay as "Teachers" The Federal Fair Labor Standards Act (FLSA) requires most workers, including nannies and other childcare providers, to be paid time and one-half for all hours over 40 they work in a week. Recently, a federal court ordered a childcare company to pay more than $92,000 in overtime pay and interest to its workers who worked more than 40 hours. In doing so, the court ruled that the FLSA exemption for teachers at elementary or secondary schools did not apply to daycare centers even if their [...]

By |2023-08-24T16:32:36+00:00June 14th, 2016|NannyPay, Tax Reminders, Tips|0 Comments

Tips for Working from Home with a Nanny

Working (from home) Home Working from home can be a challenge on it's own. Distractions and keeping a schedule are difficult enough without a child but a nanny can help. It is a great way to be able to spend more time with your child but a few clear boundaries and tips might help you stay focused, your nanny on track and your child happy! Keep good byes short and sweet and keep to a schedule. Your child will learn when it's time to spend time with mom or dad versus the nanny. As much as you may want [...]

By |2023-08-24T16:32:50+00:00June 12th, 2016|Tips|0 Comments

Federal Wage and Hour Division Enforcement Increases Focus on Employer-Employee Relationship

Mis-Characterizing Household Employees for Taxes Nannies who provide in-home care are almost always employees of the families who employ them, yet many families characterize their domestic employees as independent contractors incorrectly, either unknowingly or willfully, in order to avoid social security taxes or overtime pay rules of the federal Fair Labor Standards Act (FLSA). Over the last few years, the Wage and Hour Division of the US Department of Labor, the Division charged with enforcement of the FLSA, has increased its investigative focus on independent contractor mis-classification and nontraditional workplace structures, according to David Weil, administrator of the Wage [...]

By |2023-08-24T16:32:47+00:00May 5th, 2016|NannyPay, Tax Reminders, Tips|0 Comments

Minimum Wage Requirements Remain Varies in Absence of Federal Action

Lack of Minimum Wage Movement The federal minimum hourly wage of $7.25 was last changed in 2009, but some states and cities have established their own wage and benefit requirements in the absence of federal action. The establishment of city and county minimum wage requirements have led some states to try to curtail those local requirements to avoid a patchwork of requirements across the same state. The first $15 statewide hourly minimum wages were signed into law earlier this month by California and New York, but increase the hourly rate gradually over the next few years to $15. Several [...]

By |2023-08-24T16:32:55+00:00April 26th, 2016|Tax FAQ|0 Comments

New Employers Should Continue to Use “EXPIRED” Form I-9

Household Employers of Nannies to Complete I-9 form The US Citizenship and Immigration Service (USCIS) has announced that employers should continue to use the present Form I-9, the Employment Eligibility Verification form, even thought the Budget Office control number on that form shows an expiration date of March 31, 2016. USCIS stated that the old form remains effective until a new form is issued. All employers, including household employers of nannies and other domestic help, must complete a Form I-9 for newly hired employees to verify their identities and their right to work in the U.S. [...]

By |2023-08-24T16:32:58+00:00April 22nd, 2016|Tax Reminders, Tips|0 Comments

Family Caregivers and the “Nanny Tax”

The Nanny Tax for Family Caregivers If you hire a nanny or elder caregiver to care for your child or aging parent, you probably already know that the law generally considers this person your employee and you will need to withhold and pay the "Nanny Tax" for this person, which more specifically is social security and Medicare employment taxes. Caregivers are typically employees of the individuals for whom they provide services because they work in the homes of the family and the family has the right to tell the caregivers what needs to be done. Caring for Family Members [...]

By |2023-08-24T16:33:15+00:00April 20th, 2016|Hiring, NannyPay, Tax Reminders|0 Comments

W-2 Household Employer Obligations

Nanny Taxes and W-2's IRS Directly Receives Some 21 Million W-2s This Year in Effort to Fight Tax Fraud Household employers should know they are obligated to file Forms W-2 and W-3 concerning wages paid to their nannies with the Social Security Administration, and not with the IRS. Nevertheless, some large payroll providers are participating in a pilot program by which some 21 million employees’ W-2s were provided this year directly to the IRS, in addition to the SSA, in an effort to assist the IRS in detecting tax fraud based upon refunds claimed on false individual income tax [...]

By |2023-08-24T16:44:56+00:00March 16th, 2016|Tax Reminders|0 Comments