Tuesday, June 24, 2008
Yet More Reasons for Nanny Tax Compliance...
Bob King, Esq., President of Legally Nanny reports that H.R. 5804, the Taxpayer Responsibility, Accountability and Consistency Act of 2008, recently introduced in Congress, could impose stiff penalties for families misclassifying nannies as "independent contractors."
"H.R. 5804 would significantly increase penalties for employers who misclassify workers as independent contractors instead of correctly classifying them as employees," reports Mr. King. "Additionally, the bill places the burden of proof on the taxpayer to demonstrate that the worker was properly classified. Finally, in addition to increasing the penalties for failing to properly pay employees and provide correct payroll information such as W-2 forms, the legislation also imposes increased penalties for intentionally disregarding the worker's proper classification."
Mr. King advises that this bill is directly relevant to nanny employers. "Under both federal and state law, nannies and other household staff are employees; they are not independent contractors. Yet some clients insist on mischaracterizing nannies and other domestic workers as independent contractors - or simply avoiding the subject altogether - in an effort to avoid paying household employment taxes."
"H.R. 5804 heightens the danger to (household employers) mischaracterizing such workers. At Legally Nanny we've assisted scores of clients in hiring, employing, and paying nannies, elder care providers, and other household employees legally."
Legally Nanny offers a comprehensive package to new household employers that includes the copyrighted Legally Nanny Hiring & Employment Guide and an employment agreement specifically tailored to each client's unique household employment situation. Equally important, their one flat fee entitles clients to a full year of responsive, knowledgeable service, and if the household employee leaves within one year of the client retaining the service, they will re-do all the employee paperwork again for free.
For more information on legal issues surrounding nannies and other household employment workers, please visit www.legallynanny.com.
Bob King has practiced labor & employment law in Orange County, California. He represents household employers, domestic employment agencies, businesses and individuals in a wide variety of legal matters, including defending against claims and litigation from employees and charges and investigations from government agencies.
Bob advises clients on hiring, evaluation, accommodation and termination matters; wage and hour issues; workplace policies, handbooks, agreements and contracts; and resolving client and business disputes. Bob also serves as the General Counsel for the Association of Premier Nanny Agencies, on the Board of Directors for the International Nanny Association, and has served as an expert witness in household employment litigation.
This material is for informational purposes only; it is not legal advice.
"H.R. 5804 would significantly increase penalties for employers who misclassify workers as independent contractors instead of correctly classifying them as employees," reports Mr. King. "Additionally, the bill places the burden of proof on the taxpayer to demonstrate that the worker was properly classified. Finally, in addition to increasing the penalties for failing to properly pay employees and provide correct payroll information such as W-2 forms, the legislation also imposes increased penalties for intentionally disregarding the worker's proper classification."
Mr. King advises that this bill is directly relevant to nanny employers. "Under both federal and state law, nannies and other household staff are employees; they are not independent contractors. Yet some clients insist on mischaracterizing nannies and other domestic workers as independent contractors - or simply avoiding the subject altogether - in an effort to avoid paying household employment taxes."
"H.R. 5804 heightens the danger to (household employers) mischaracterizing such workers. At Legally Nanny we've assisted scores of clients in hiring, employing, and paying nannies, elder care providers, and other household employees legally."
Legally Nanny offers a comprehensive package to new household employers that includes the copyrighted Legally Nanny Hiring & Employment Guide and an employment agreement specifically tailored to each client's unique household employment situation. Equally important, their one flat fee entitles clients to a full year of responsive, knowledgeable service, and if the household employee leaves within one year of the client retaining the service, they will re-do all the employee paperwork again for free.
For more information on legal issues surrounding nannies and other household employment workers, please visit www.legallynanny.com.
Bob King has practiced labor & employment law in Orange County, California. He represents household employers, domestic employment agencies, businesses and individuals in a wide variety of legal matters, including defending against claims and litigation from employees and charges and investigations from government agencies.
Bob advises clients on hiring, evaluation, accommodation and termination matters; wage and hour issues; workplace policies, handbooks, agreements and contracts; and resolving client and business disputes. Bob also serves as the General Counsel for the Association of Premier Nanny Agencies, on the Board of Directors for the International Nanny Association, and has served as an expert witness in household employment litigation.
This material is for informational purposes only; it is not legal advice.
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