Thursday, April 27, 2006

 

Vacation Time

Written by Kathleen Webb

Most of the world looks forward to summer. Longer days, outdoor activities, and the promise of some vacation time away from the day to day grind all contribute to our up-beat mood. Many nannies, however, dread the coming summer months. Why?

Will I be Paid?
Most nannies and their employers have a very informal work relationship, without any formal written agreement. The work and pay related details that most employers take for granted - Paid Time Off (sick/vacation/personal) and vacation scheduling - are gray clouds over the nanny's head. Many wonder, and are afraid to ask, will I be paid?

As a rule of thumb, the full time nanny should be paid for any regularly scheduled day when she is available to work and the family, for any reason, decides they don't need her. This includes holidays such as the 4th of July as well as the family's beach week. The full time nanny should have an agreed number of Paid Time Off (PTO) or flex days available to her and reasonable latitude to schedule her personal vacation, etc. She may have some scheduling limitations, agreed to in advance, as to the timing and duration of vacation time, but should have reasonable discretion in the matter. When the nanny's and family's vacation time to do not coincide, it is reasonable for the family to ask the nanny to perform routine household functions such as pet care, organization of school supplies and clothes, etc. during the time the family is away. Usually the nanny has some flexibility during this time, but agreed upon tasks should be accomplished in the family's absence.

The nanny's vacation is important to her. Many nannies join other family members - spouses, siblings, parents - on annual holidays and it is the family's responsibility, again with reasonable agreed to notice, to arrange alternate childcare.

Compensation for permanent part time nannies can be problematic. The rule of thumb is that the permanent part time worker (not to be confused with seasonal or temporary nannies) should be paid for any holiday that falls on their normal work day (July 4th again as an example) and any agreed upon PTO should be compensated according to their regular schedule. A 25 hour per week nanny, for example, would receive 25 hours pay on a week's vacation.

As always, good communication between nanny and employer goes a long way to alleviate these nagging questions. A written work agreement, without a doubt, is the best tool to keep everyone in agreement on scheduled work and compensation matters.


Looking for more information on writing a nanny work agreement and defining compensation issues? Try 4nannies.com: Nanny Salary and Benefits.

Friday, April 21, 2006

 

Immigration Crackdown: Employer Sanctions

The news wires have been abuzz in the last week with a stunning number of arrests of employers of illegal aliens (undocumented workers). These employers face real jail time as well as substantial fines. The illegal aliens arrested face prompt deportation hearings.


IFCO Systems: Homeland Security Secretary Michael Chertoff announced today a major initiative targeting employers of illegal aliens. Chertoff promises tough workplace enforcement, coupled with tough criminal penalties against company managers. The sweeping raids are just the lastest in a series of high profile workplace enforcment efforts. 1200 undocumented workers were arrested in raids of 40 facilities in 26 states. Seven current and former managers of German-based IFCO Systems were arrested in the sting operation and face criminal charges.

Kawasaki restaurants: Two Baltimore sushi restaurant operators plead guilty April 14to conspiracy to commit alien harboring and conspiracy to engage in money laundering, in connection with the employment of illegal aliens of various nationalities in residences and restaurants they owned and rented.


HV Connect: A Clevelend Ohio temporary employment service was charged with immigration violations also, uncovered in the course of a terrorism investigation. Operators face charges of illegal employment, harboring and money laundering.


Wal-Mart: The Justice Department, in the largest worksite enforcement action in U.S. history, announced an $11 million settlement with Wal-Mart last year as a result of a criminal investigation into the alleged hiring of illegal immigrants by contactors providing cleaning services to the company's stores across the country.


Domestic Slavery: A Montgomery County MD woman, Adaobi Stella Udeozor, was sentenced to 7 years in jail Wednesday after being convicted in Federal court for conspiracy and harboring a juvenile alien for financial gain. The victim was forced to baby sit 6 children and perform other household tasks for nearly 5 years. The victim was also raped by the Udeozor's ex-husband, George Udeozor. The judge ordered Ms. Udeozor to pay back wages/restitution of $110,249 to her victim.


The tone and tenor of the immigration debate is increasingly demanding solutions. The impact on household employment and families who employ illegal aliens as nannies and housekeepers remains to be seen. For more information on the legal requirements for hiring a domestic worker, visit the HomeWork Solutions website and read their FAQ.

Friday, April 14, 2006

 

Immigration Reform and the Nanny Taxes

You cannot watch the evening news or listen to the radio without hearing the latest on the immigration debate. Immigrants are protesting demanding citizenship paths; citizens are fussing about controlling the border, guest worker vs. amnesty, the debate rages.

Absent from the public debate is the impact any immigration reform legislation might have on the current employers of the illegal aliens. While most illegals working in industry are being paid on the books and paying taxes, this is not true of the majority of illegals working as domestics - nannies, maids, housekeepers.

The overall tax compliance rate for domestic workers is abysmal - estimated in the 20 - 30% range. Reliable figures don't exist for what portion of these workers are illegals (non-documented immigrants) but there is no denying that these numbers are substantial. From the Irish nannies working in New York City to the Polish housekeepers in Chicago to the Hispanic maids and housekeepers in Texas, non-documented workers staff a large number of domestic employment positions.

So what will happen? All of the current proposals floating around Washington will requires background checking of any illegal seeking a permanent or legal status. Part of that will be documentation that the illegal didn't break the law, including paying taxes.

Families who have been employing these workers and not paying taxes face enormous risks. These workers, when faced with the opportunity to get a green card, will likely have a change of heart about not paying taxes. Families will be forced to choose between reporting and paying the back employment taxes, with the associated penalties and other fees, or discharging the worker. Even if the worker demanding that taxes be paid is fired, the family is still at risk. The new assertiveness of the illegal community, coupled with the infamous 'grapevine' of information sharing, should give one pause. Why wouldn't that fired worker just rat out the employer anyway? Remember, the burden of collecting and remitting the employment taxes rests on the employer. Employers who fail to collect remain responsible to pay the employment taxes, and there is no statue of limitations on employment tax liability.

Today, the family's and nanny's economic needs are in sync. The family wants to minimize its childcare or housekeeping costs, the nanny or housekeeper sees no value to paying taxes when they cannot participate in the benefits (Social Security, Medicare). One can see a future, however, when these economic needs are vastly divergent. The illegal who is offered a path to legalized status could very well have a complete change of heart on the tax issue if that is the sole barrier to the legalized status.

HomeWork Solutions provides payroll and payroll tax services to household employers nationwide. We have assisted thousands of employers with 'back tax' issues, from as little as a year to as many as 20+ years. HomeWork Solutions website has more information as well as an informative FAQ.

Saturday, April 01, 2006

 

Nannies and Parents: The Discipline Question

Survey any 5 families and you will find vastly different 'theories' and 'practices' on discipline. From time-outs to spanking, a stern talking-to to negotiation to removing privileges. Eveyone thinks they know the best answer.

Children, however, need CONSISTENT discipline. This means that parents and nanny need to be on the same page, use the same messages and processes, and consistently enforce the same rules.

ABSOLUTE RULE: Nanny should NEVER physically punish a child in his/her care. NEVER. Parents may feel a swat on the bum is fine, but the nanny should NEVER engage in this!

Tension between parents and caregivers results when there is no agreement on discipline, and the children pay the price. A common scenario is the nanny who enforces the rules and keeps everything on a even keel all week, then come weekend the kids don't do their chores, eat what they shouldn't, jump on the beds, and so on without consequence. Come Monday morning Nanny has to start all over again. Why? Mom and Dad often cite job stresses and the need to 'relax' on the weekend as reasons for their lax enforcement. Being the 'enforcer' is not fun, ask any stay-at-home-mom, but it IS necessary.

This story can easily go the other direction - Mom and Dad have rules about appropriate snack food for example, or TV viewing limits, and nanny disregards these rules of the house.

In any event, successful child rearing requires consistency; Parents, talk to your nanny about discipline issues as they arise. Everyone should be free to suggest responses, then one gets picked and everyone enforces it!

Former INA Nanny of the Year Michelle LaRowe has recently published
Nanny to the Rescue!, a wonderful resource for parents and nannies for dealing with this and other common child rearing challenges.

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