HomeWorkSolutions is the nation's leading preparer of "Nanny Tax" returns and an industry expert in payroll and compliance issues for any type of domestic employment situation. Our team of specialists provide both support and peace of mind to individual employers, CPA's and trust companies that require assistance with nanny payroll and nanny tax compliance.

Since 1993, we have assisted thousands of employers with "Nanny Tax" compliance. So if you employ a nanny, housekeeper, maid, chef, personal assistant, household manager, elder companion or any other type of domestic, our team will make sure you have all the information and support you need. Our programs range from full payroll services to nanny tax compliance services - plus we offer tips on how to hire and screen the right staff.

Our services and solutions are client friendly, supported by our robust, secure web-based client management and tax processing systems and WE GUARANTEE THE ACCURACY OF OUR WORK! Contact us today for more information or to get started.

Four Steps to Becoming the Ultimate Household Employer

Latest Updates from HomeWork Solutions Inc.

Guest blogger Bonnie Low-Kramen is the author the book, Be the Ultimate Assistant, A celebrity assistant’s secrets to working with any high powered employer. Bonnie is the former assistant to celebrity couple Olympia Dukakis and Louis Zorich. Bonnie is now teaching workshops for Personal Assistants in major U.S. cities. Visit www.bonnielowkramen.com for more details.

Be kind to people on the way up- you’ll meet them again on your way down. – Jimmy Durante

It was recently reported in USA Today that 48 percent of employees believe that being courteous leads to advancement at work. And in a recent AOL article, business writer David Schepp writes, “with five applicants for every job opening in the current labor market, it’s not surprising that employers have focused more on employees’ soft skills. After all, in trying times, such as those experienced during the recent recession—being able to handle stress with aplomb can go a long way toward maintaining harmony in the workplace.”

These statistics speak to what we all value in a work environment – respect and appreciation. What manager or CEO doesn’t want a healthier and more functional relationship with their staff? These four steps can make a positive difference in your household organization and build morale, especially in today’s highly pressured workplace.

1. Getting to know you. How well do you know your staff? Taking the time to sit down one-on-one with your staff can build bridges and respect that transcends titles. When you understand what makes them tick and they get to know you; you are sending signals that you are interested in them as a person, not just the job they perform. Make it a practice to know birthdays and other important events in the life of your staff. Even if you can’t offer a monetary incentive, a few hours off to attend a special family event or a child’s baseball game might even be better. Take the time to find out who is on your team and why. 
2. Listen up. Your staff is an invaluable resource. The benefits in building relationships with your staff are numerous. Your staff serves everyone well as the face and voice of your household organization, the first point of contact with family and clients, and can trouble-shoot many problems before they ever reach you. The hallmark of your leadership is found not when you ignore your staff but when you respect them as the valuable team players they are. Engage your team by frequently asking, “What do you think?” and encourage honest response. Discuss your decisions. Staffers who have a voice feel ownership and strongly connected to the successes of their principals. Reward this kind of initiative and the benefits will come right back to you. 
3. The value of undivided attention. In a time of text messages, smartphone emails, custom ringtones, and 24/7 accessibility, the concept of giving another person one’s undivided attention has become a rare commodity. Ten minutes might be all your staffer needs with you to get the answers he needs in order to get the ball rolling on a myriad of projects. Author Jim Rohn said, “Give whatever you are doing and whoever you are with the gift of your attention.” What a great piece of advice. Look your staff in the eye while speaking to them and try to avoid answering with email or texts when possible. The smart managers know how to multitask and seek out face time as a team building tool. 
4. High praise. It’s a fact- sincere praise motivates staff to produce excellent work far more than humiliation, intimidation, and yelling. Praise is powerful in every form – written and verbal. To publically praise a staffer inspires every team member to seek excellence in order to garner similar praise. John Maxwell said, “The disposition of the leader is important because it will influence the way the followers think and feel. Great leaders understand that the right attitude will set the right atmosphere, which enables the right responses from others.” Sharing the credit and spotlight elevates the whole team. The rise in your leadership begins when you take the spotlight off yourself and place it on your team. When you sing their praises be assured, they will sing yours. Becoming the ultimate manager is possible but it takes hard work and careful choices based on respect and appreciation for the staff.

Learn more! Date: Tue, 08 May 2012 12:40:00 GMT

Crackdown on Worker Misclassification Spreads

Latest Updates from HomeWork Solutions Inc.

Worker misclassification - the practice by an employer of treating an employee as an independent contractor for purposes of avoiding employment taxes - is a constant issue in the field of household employment. Many household employers - and employees - simply feel this is easier, that the tax forms are too complicated, or the tax expense too high.

The Obama Department of Labor (US DOL) began enforcement in the areas of worker missclassification in 2010. In 2011 the US DOL, the Internal Revenue Service, 11 states and one territory entered into a Memorandum of Underderstanding (MOU) for the purpose of information sharing between the federal agencies and their state counterparts to help identify employee misclassification, and pursue administrative and legal action against the employers. In 2012 California signed the MOU as the 12th state.

Maine signed into law April 18, 2012 H.B.960, "Act To Standardize the Definition of "Independent Contractor." In the Maine statue, "An employer that intentionally or knowingly misclassifies an employee as an independent contractor commits a civil violation for which a fine of not less than $2,000 and not more than $10,000 per violation may be adjudged." This is in addition to assessments for back taxes, penalties and interest.

The Maine law closely mirrors Federal language, simply stating that "Services performed by an individual for remuneration are considered to be employment ... unless it is shown to the satisfaction of the bureau that the individual is free from the essential direction and control of the employing unit..." It goes on to state that an independent contractor controls the means and process of the work (how the work is done), is customarily engaged in an independently established business, has opportunity for profit or loss, pays for their own assistants or sub-contractors, and has an investment in the tools of the trade.

Under U.S. common law, a worker who performs services for you is your employee if you can control what will be done and how it will be done. It does not matter whether you give your household employee great latitude or that the employee has occupational or professional training for his/her position, but simply that you have the right to control the work. It does not matter if the work is performed on a full time or part time basis. It does not matter whether the worker lives with you or not. It does not matter if he/she is paid hourly, daily or a salary. It does not matter how the employee refers to herself or how you refer to him/her in an employment contract. The household worker is your employee and you are generally obligated for all payroll tax filings and remittances.

The actions being taken at both the Federal and state levels to correct worker misclassification are the most coordinated and aggressive we have seen in our twenty years in the household payroll arena. Tax collection activities always step up when there are revenue shortfalls, and shortfalls in the unemployment compensation funds at both the state and federal levels are at historic highs. The Commonwealth of Virginia recently mailed out letters with questionaires to thousands of entities (businesses and households alike) that they identified, with the help of IRS data, as possibly misclassifying employees.

HomeWork Solutions provides payroll and payroll tax services specifically to household employers. We are recognized experts in the field with 20 years of experience, helping households nationally. If you would like to discuss your situation, call 800.626.4829 for a free consultation with one of our household employer consultants.

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Learn more! Date: Wed, 25 Apr 2012 12:20:00 GMT

G-5 Domestics and US Income Taxation

Latest Updates from HomeWork Solutions Inc.

The US Treasury's Internal Revenue Service (IRS) advises that G and A visa holders temporarily present in the United States as a foreign government related individual are non-residents for income tax purposes, no matter how long they have resided in the United States.

The US Department of State in a Diplomatic Note dated March 27, 2012 advises:

Why is this important? G-5 and A-3 domestic servants, admitted to the United States to work for staff members of international organizations and missions, must pay US income taxes on their wages. The G-5 or A-3 domestic may be required to file and pay US income taxes using either Form 1040NR or Form 1040NR-EZ. Forms 1040 and 1040-EZ may not be considered proper filings. Failure to properly report and pay US income taxes will cause the application for visa renewal or visa extension to be denied by the US State Department.

G-4 and A-1 sponsors of the G-5/A-3 domestic servant is, under US law, a withholding agent when the sponsor pays to a non-resident alien income subject to US income taxation. As a withholding agent, the sponsor is personally liable for any tax required to be withheld. This liability is independent of the tax liability of the foreign person to whom the payment is made. If the sponsor fails to withhold and the foreign payee fails to satisfy its U.S. tax liability, then both the sponsor and the foreign person are liable for tax, as well as interest and any applicable penalties. It is a best practice for the G-4 or A-1 sponsor of a domestic servant to withhold US income taxes from the G or A visa holder they employ.

As a general rule, withholding using a status of Single with zero exemptions will closely approximate the amount of US income taxes the non-resident will owe at year end. Withholding calculations are approximate - actual tax due is calculated on the actual tax return.

More Information:
IRS Publication 519
IRS Publication 515

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Learn more! Date: Mon, 09 Apr 2012 19:52:00 GMT

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