Nanny Tax Blog Archives November 2007

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Friday, November 30, 2007

Federal Mileage Reimbursement Rate to Rise

The Federal mileage reimbursement rate is scheduled to rise to 50.5 cents per mile. This rate is generally used by nanny employers to reimburse their nannies for the business use of their personal vehicle. These nannies will often use their own car to drop off/pick up their charges from preschool, enrichment activities, and sports activities. Nannies also will use their vehicle for family grocery shopping and other errands.

The new, higher reimbursement rate will become effective January 1, 2008.

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Wednesday, November 28, 2007

5 Reasons to Run Nanny Background Checks

Are you wondering how to find an honest, caring, reliable nanny to care for your family? Are you tired of the daily day care shuffle? Frustrated negotiating with your partner who is to stay home with the sick child? Whatever your reason for hiring a nanny, please don't bring a nanny into your home without thoroughly confirming her background.

Why run a nanny background check you might wonder?

#1 A professional pre-employment background check will confirm your applicant's identity. You will match her name and social security number using compiled credit bureau records, confirming that this person really does have this Social Security Number.

#2 You will receive a verification of the applicant's residential history. If she tells you she worked in Colorado from 2002 - 2005 and in New York from 2005 - 2007, the background check should confirm those locations. You might also find that in 2005 she had a Chicago address - why didn't she mention this?

#3 Experts recommend that a Motor Vehicle Records check be performed, even if you do not plan on having the nanny drive your children at this time. A review of her driving records can provide you insight into her character. This report will advise you of any violations, periods of license suspension, and confirm the validity of the driver's license. You might find three traffic stops for excessive speed within two years. A bit impulsive maybe? You may also find that the license was suspended two times for failure to pay fines. One can interpret these findings in the context of unsupervised child care - do you want this person in sole charge of your children?

#4 A professional background check can also independently verify the nanny's references. For families hiring without an agency, this is an important second opinion to confirm or cast doubt on their own reference checking results. Families should require a minimum of three non-related references, and most importantly check them all!

#5 Lastly, a pre-employment nanny background check can confirm that the nanny applicant is not listed on sex offender registries and has a clean criminal record.

You hire your nanny to keep your children safe, secure, and happy when you are unable to be there. Spend the necessary time and effort to thoroughly research the background and history of your nanny before you leave your children with them.



Nanny Background Check Services by 4nannies.com

Monday, November 12, 2007

New I-9 Form Released

The Department of Homeland Security (DHS) has released the new Form I-9, Employment Eligibility Form. This is the first substantial form revision since 1997.

The new I-9 form reduces the number of documents that employers can accept from newly hired employees to verify employment eligibility. All newer employment authorization forms with photo id are now added to the list of acceptable documents.

All employer's are required to obtain a completed form I-9 and to review the newly hired nanny's supporting documents at time of hire. Effective November 7, 2007 the only acceptable version of the form for employer's use is marked with the June 5, 2007 revision date. The form must be retained by the employer for 3 years after its signing date or one year after the end of employment, whichever date is later.

The new Form I-9 may be downloaded from the 4NannyTaxes.com website.

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Wednesday, November 07, 2007

2008 Transportation Fringe Benefits to Increase

Many nanny employers provide their nannies with tax free transportation benefits.

The monthly limit for transit passes and commuter highway vehicles that are qualified transportation fringe benefits is $115.00 in 2008. The monthly limit for the qualified parking benefit will increase to $220 in 2008, up from $215 in 2007.

Many nannies and housekeepers in urban areas commute via public transportation. Many nanny employers find transportation benefits an easy, tax free way to fund the nanny's commuting costs, costs she would incur in any event. HomeWork Solutions advises clients to make the payment for the transportation benefit directly to the transit authority when possible. If payment is made to the nanny or other household worker, it should be via a separate paycheck appropriately documented.

Stepped Up Workplace Immigration Enforcement Continues

The Department of Homeland Security (DHS), temporarily blocked by the courts from using Social Security Administration "No Match" letters as part of their immigration enforcement efforts, continues to aggressively pursue workplace enforcement efforts, particularly against what they consider repeat or large scale violators.

A recent high-profile investigation of Rosenbaum-Cunningham International Inc., or RCI, a Florida-based cleaning contractor, led to the nationwide arrests in February of more than 200 illegal immigrants, mostly Mexican nationals. The president of RCI Inc. was ordered to pay a fine of $16 million after pleading guilty to conspiring to defraud the U.S. government by hiring and harboring illegal aliens. A reportedly close working relationship between the Internal Revenue Service and DHS was instrumental in the successful prosecution of RCI officers.

According to a DHS November 6, 2007 press release, "ICE continues to increase worksite enforcement operations. In Fiscal Year 2007, ICE made 863 criminal arrests and 4,077 administrative arrests for a total of 4,940 arrests. In Fiscal Year 2007, DHS obtained more than $30 million in criminal fines, restitutions and civil judgments as a result of worksite enforcement."

DHS refers employers to their expanded e-Verify program (www.dhs.gov/E-Verify), a web-based system that electronically verifies the employment eligibility of newly hired employees.

HomeWork Solutions encourages clients to verify their employee's Social Security Number at the time of hire. This identification is used for the crediting of Social Security, Medicare and Unemployment taxes. A mistake in this tax reporting can lead to a long-term pen-pal relationship between the employer and the SSA and/or the IRS in attempts to correct the records.

View Complete DHS Press Release