Thursday, July 31, 2008
Rhode Island Courts Troubled by Janitorial Staffing Issues
Recent workplace immigration enforcement raids in the Rhode Island State Court buildings resulted in the detention of 31 contract janitorial staffers (from a staff approximating 55). The companies contracted to provide janitorial services have been told they either need to produce evidence of I-9 compliance (Verification of Work Eligibility) using the DHS' e-Verify databases, or risk losing the contracts.
Further review of payroll tax reports (unemployment tax) revealed significant discrepancies between the number of workers reported on the payroll tax reports and the number of workers who had signed in for work in the court systems, for which the state was billed.
Workplace enforcement continues to be the main thrust of the DHS' domestic immigration enforcement actions. Employers are increasingly facing penalties for non-compliance with I-9 requirements, as well as inaccuracies in payroll tax reporting.
Further review of payroll tax reports (unemployment tax) revealed significant discrepancies between the number of workers reported on the payroll tax reports and the number of workers who had signed in for work in the court systems, for which the state was billed.
Workplace enforcement continues to be the main thrust of the DHS' domestic immigration enforcement actions. Employers are increasingly facing penalties for non-compliance with I-9 requirements, as well as inaccuracies in payroll tax reporting.
Labels: illegal immigrant taxes, immigration worker tax, payroll tax evasion
Tuesday, July 22, 2008
Minimum Wage for Nanny Payroll Increases
The Federal minimum wage, which covers nannies, maids, housekeepers, and other domestic service workers, increases to $6.55 per hour on July 24, 2008.
There are substantial revisions to the minimum wage for nanny payroll across the country this month. Please refer to our chart "Minimum Hourly Wage Rates for Nanny Payroll by State" for the most recent information on your state.
The Minimum Wage Compliance Calculator tool, part of our Suite of Free Nanny Tax Calculators available to all domestic employers has been updated today to reflect the new rates.
Nanny employment is specifically covered by the Fair Labor Standards Act's minimum wage provisions. Under Federal law, LIVE-IN nannies (or housekeepers, maids, etc) are not entitled to the overtime differential of 1.5 times the normal hourly rate. Maryland and New York specifically provide the overtime differential to live-in domestics.
As a practical matter, in today's competitive nanny market, employers almost always have to offer a compensation package well in excess of current minimum wage levels.
There are substantial revisions to the minimum wage for nanny payroll across the country this month. Please refer to our chart "Minimum Hourly Wage Rates for Nanny Payroll by State" for the most recent information on your state.
The Minimum Wage Compliance Calculator tool, part of our Suite of Free Nanny Tax Calculators available to all domestic employers has been updated today to reflect the new rates.
Nanny employment is specifically covered by the Fair Labor Standards Act's minimum wage provisions. Under Federal law, LIVE-IN nannies (or housekeepers, maids, etc) are not entitled to the overtime differential of 1.5 times the normal hourly rate. Maryland and New York specifically provide the overtime differential to live-in domestics.
As a practical matter, in today's competitive nanny market, employers almost always have to offer a compensation package well in excess of current minimum wage levels.
Wednesday, July 16, 2008
Follow-up: Contracts Required with Nannies in Montgomery County (MD)
The Montgomery County (MD) Council is creating quite a stir with it's new "Nanny Contracts" law.
One point missed in yesterday's media is that the county will be drafting and publishing a model work agreement and disclosure statement. I believe the only substantial difference between the eventually published model and the sample nanny work agreements published at 4nannytaxes.com will be the disclosure statement to the effect that nannies and other domestics are protected under various state and federal laws. Chief among these in Maryland is the requirement to pay live-in domestics an overtime differential (referred to as time and a half) for all hours worked in a week over 40. This is a more strict requirement then offered by the Federal Fair Labor Standards Act (FLSA).
We will keep you posted as developments occur. This blog was picked up by the Washington Post article on the nanny contracts legislation today, pointing out that Montgomery County MD has the highest filing rate of nanny tax returns of any jurisdiction in the nation.
One point missed in yesterday's media is that the county will be drafting and publishing a model work agreement and disclosure statement. I believe the only substantial difference between the eventually published model and the sample nanny work agreements published at 4nannytaxes.com will be the disclosure statement to the effect that nannies and other domestics are protected under various state and federal laws. Chief among these in Maryland is the requirement to pay live-in domestics an overtime differential (referred to as time and a half) for all hours worked in a week over 40. This is a more strict requirement then offered by the Federal Fair Labor Standards Act (FLSA).
We will keep you posted as developments occur. This blog was picked up by the Washington Post article on the nanny contracts legislation today, pointing out that Montgomery County MD has the highest filing rate of nanny tax returns of any jurisdiction in the nation.
Labels: domestic worker contracts, domestic worker payroll, nanny contracts, nanny payroll taxes, nanny tax compliance, nanny work agreements
Tuesday, July 15, 2008
Nanny Work Agreements or Contracts the Law in Montgomery County (MD)
The Montgomery County (MD) Council has unanimously approved the 'Nanny Bill' today (7/15/2008) and County Executive Isiah Leggett (D) is expected to sign this measure into law. The bill requires household employers in Montgomery County to have a written work agreement that clearly states the job description, wages and benefits for their household employees. Employers of live-in domestic help are required to provide a private room with a lock and reasonable access to bathroom, kitchen and laundry facilities.
Montgomery County is the first in the nation to pass a bill designed to protect the household employee. It aims to protect nannies and other domestic workers against unfair wage practices, and insure overtime compensation. Other jurisdictions considering such legislation include San Francisco and New York City. Once the Montgomery County 'Nanny Bill' becomes a law, household employers will have six months to comply with the new rules or face up to a $1000 fine per violation.
Interestingly, according to IRS statistics, nanny tax compliance in Montgomery County MD is the highest in the nation at 1238% the national average filing rate (Tax Year 2003). Montgomery County includes the Washington DC suburbs of Potomac, Bethesda, Chevy Chase and Silver Spring.
HomeWork Solutions has long advocated that a written nanny work agreement is a best practice to protect both the worker and the employing family. It's article Ten Tips for Writing the Nanny Work Agreement is one of their more popular website downloads.
Montgomery County is the first in the nation to pass a bill designed to protect the household employee. It aims to protect nannies and other domestic workers against unfair wage practices, and insure overtime compensation. Other jurisdictions considering such legislation include San Francisco and New York City. Once the Montgomery County 'Nanny Bill' becomes a law, household employers will have six months to comply with the new rules or face up to a $1000 fine per violation.
Interestingly, according to IRS statistics, nanny tax compliance in Montgomery County MD is the highest in the nation at 1238% the national average filing rate (Tax Year 2003). Montgomery County includes the Washington DC suburbs of Potomac, Bethesda, Chevy Chase and Silver Spring.
HomeWork Solutions has long advocated that a written nanny work agreement is a best practice to protect both the worker and the employing family. It's article Ten Tips for Writing the Nanny Work Agreement is one of their more popular website downloads.
Labels: nanny bill of rights, nanny contracts, nanny work agreements
