Risks of Payroll Tax Advoidance

Member Log-In Sign Up Now! Home Page

Risks of Payroll Tax Advoidance

Frequently Asked Questions

Loading Search...

What Clients Are Saying

It is a real pleasure to work with an outfit that is so well organized, knowledgeable, efficient.....and above all, courteous.
Your staff are outstanding and your web services are so user friendly.
I can go about my business confident that my nanny's payroll is in good hands.
Wonderful service staffed by nice people who enjoy dealing professionally with the all to often less than thrilling payroll taxes.
Home \ Elder Care FAQ List \ Risks of Payroll Tax Advoidance

Bookmark and Share

What may happen if I don't pay the employment taxes for my housekeeper or home health aide?

Failure to report domestic wages paid after January 1, 1995 compromises the validity of your personal income tax return, which is signed under penalties of perjury. Additionally, there is no statue of limitations on the failure to report and remit federal payroll taxes. You are most likely to be "caught" when a former employee files for unemployment insurance payments or Social Security benefits. Employers are generally required to pay back taxes, penalties and interest charges, and usually professional fees for an accountant and/or attorney.

The implications of tax avoidance in elder care situations is particularly troublesome.

Sadly, in the case of domestics (housekeepers, companions, home health aides) engaged to provide assistance to an elderly person to help them stay in their home, there have been numerous cases of claims filed against the estate of the elder. Staff whose employers pass away generally will file for unemployment benefits while they search for another position, and many themselves will seek retirement and make a Social Security claim. The back taxes, penalties and interest, and professional fees to straighten this out can significantly reduce an estate. The handling of these back tax matters can take many months, including a significant amount of the estate's executor's time, and will delay the distribution of the estate.

HomeWork Solutions can assist employers becoming current with back tax obligations.

 More Information


For More Information contact HomeWork Solutions, Inc.
at 1-800-NaniTax or e-mail and submit a question.