Immigration Reform Redux?

President Obama campaigned with a promise of comprehensive immigration reform legislation in his first year in office. On Wednesday, Senator Chuck Schumer (D-NY) got the ball rolling.

Immigration reform stalled in 2006-2007 over objections to lax border enforcement. Sen. Schumer is pointing to a 27% drop in apprehensions along the US-Mexican border as evidence that the border is now secure, and that we are ready to legalize illegal immigrants within our borders and rewrite outdated immigration rules.

The Obama Administration is publicly committed to continuing the Bush Administration border security measures, including finishing his plans for fencing and vehicle barriers. Interior enforcement has shifted from apprehension and deportation of illegal immigrants to prosecuting the employers who illegally provide them jobs.

President Obama will host a bi-partisan Congressional group at the White House on June 8 to begin policy conversations about immigration reform. It is generally accepted that any amnesty program (conferring of legal status to those who entered and worked without papers) will involve an examination of prior U.S. tax compliance (3 - 5 years back) as well as evidence of current tax compliance in the workplace. Not reporting income and paying the associated taxes is seen as evidence the alien petitioner has broken US law during their stay.

Watch those state taxes...

State budgets are strained to the breaking point, and many governors and state legislatures are proposing, or have enacted, state tax hikes to avoid essential service cuts.

According to CNNMoney.com, 16 states have enacted tax increases this year, and another 17 are considering proposals.

Already this spring, Arizona and California mid-year tax hikes have caused nanny employers additional record keeping headaches. Many Arizona nannies found that while the Federal income tax rate reductions added a few extra dollars to their pay check, Arizona came by a month later and took that money back.

According to the article,

More tax increases are likely as states continue to struggle with the economic downturn, especially since state revenues usually don't recover until 12 to 18 months after the national economy turns around.

I encourage household employers to stay informed - subscribe to this blog for example - as all of the tax rate changes so far this year have occurred on very tight timelines.

Free Training to Help Nannies Create Budget Friendly Summer Fun for Struggling Families

Washington, D.C. (May 18, 2009) - The National Association for Nanny Care, an umbrella organization serving all those working in the nanny care industry, will present the teleworkshop Welcome to Camp Nanny on Sunday, May 31st from 8 to 9 PM EST. This workshop is free and open to the public. Welcome to Camp Nanny is designed to help caregivers plan fun, educational, and inexpensive summer activities for their charges.

"Today's economy is forcing many parents to tighten their childcare budgets. And with summer right around the corner, many families are cutting their childcare costs down by cutting out day camps and other non-essential activities." said Sue Downey, Vice-President of NANC. "But they still want their kids to have a fun and learning-filled summer vacation. That's where a year-long or summer nanny can really help. A nanny can design a summer full of fun and interesting activities, field trips, and creative projects around the individual learning style and interests of a child. And she can do it for surprisingly little money. This workshop will help new nannies get started on a summer fun plan and provide experienced nannies with fresh ideas and new resources."

NANC provides the national nanny community with a wide variety of training opportunities throughout the year. "Studies show a direct, positive correlation between the amount of training a caregiver receives and her ability to provide consistent, quality care." said Lora Brawley, President of NANC. "So our focus continues to be on providing nannies with high quality 'learn today, use tomorrow' workshops through our annual conference, our Business Promoting Education Initiative and now our teleworkshop series. It's exciting to see how a small investment in education can produce big results in the caregiving environment."

To register for this workshop, join the NANC mailing list at www.NannyCredential.org or send an email to info@NannyCredential.org.

Welcome to Camp Nanny is the first in a series to be offered by NANC. The remaining workshops will be offered free of charge to NANC members only. Caregivers can join NANC for a $15 annual fee.

The National Association for Nanny Care is a non-profit, educational organization dedicated to promoting excellence in nanny care. We are an umbrella organization that welcomes all those that share our mission. To learn more, please visit www.NannyCredential.org.

Contact:
Lora Brawley, President, NANC
info@nannycredential.org
202 517-8025

Important Information for New World Bank and IMF Employers

The Economic Stimulus Act, passed in February 2009, significantly lowered the income tax withholding rates for lower income U.S. workers. Why? The new tax rates are calculated assuming the worker will receive the new Making Work Pay tax credit, and the new rates "pre-pay" the credit in the form of lower income tax withholding.

Non-resident aliens, non-citizen individuals who are legally authorized to work in the United States and who work for less than 6 months in their first year on their work visa, are not eligible for the Making Work Pay tax credit. This means that the new, post-Stimulus Act tax rates are invalid for these individuals. HomeWork Solutions advises employers of these individuals, typically G-5, A-3 and NATO-7 visa holders who arrive after July 1, 2009, to use the 2009 Jan. - March tables when making any online withholding tax calculations.

The following two rules pertaining to Non-Resident Alien withholding remain in effect:
1. The Non-Resident Alien is only entitled to one (1) exemption on the form W-4.
2. The Non-Resident Alien MAY NOT claim Head of Household status.