HomeWorkSolutions is the nation's leading preparer of "Nanny Tax" returns and an industry expert in payroll and compliance issues for any type of domestic employment situation. Our team of specialists provide both support and peace of mind to individual employers, CPA's and trust companies that require assistance with nanny payroll and nanny tax compliance.

Since 1993, we have assisted thousands of employers with "Nanny Tax" compliance. So if you employ a nanny, housekeeper, maid, chef, personal assistant, household manager, elder companion or any other type of domestic, our team will make sure you have all the information and support you need. Our programs range from full payroll services to nanny tax compliance services - plus we offer tips on how to hire and screen the right staff.

Our services and solutions are client friendly, supported by our robust, secure web-based client management and tax processing systems and WE GUARANTEE THE ACCURACY OF OUR WORK! Contact us today for more information or to get started.

How to Choose a Quality Nanny Agency

Latest Updates from HomeWork Solutions Inc.

A quality nanny placement and referral agency can be a life saver for families hiring a nanny, especially for first time employers and families with newborns. The plethora of on-line options almost leaves more questions for families than they answer. Families wonder:

• What are the qualities of a good nanny?
• How do I check the references and ask the right questions?
• How do I do real background checks?
• What are the standard compensation and benefits practices in our area? How do we know we are competitive, and not under paying or over paying?

An experienced, reputable nanny placement and referral agency can help families with all of these issues. To learn more about how to select a quality nanny placement and referral agency, download our free tip sheet, 10 Tips: How to Choose a Nanny Agency.

HomeWork Solutions partners with select nanny and household staffing agencies nationwide to provide free payroll and employment tax consultations to their client at time of hire. Addressing these issues at the beginning of the employment relationship gets everyone off on the right foot and demonstrates the hiring family's intent to treat the nanny or housekeeper professionally. We encourage hiring families to take advantage of HomeWork Solutions' free consultation and avoid unpleasant surprises and unplanned expenses when tax filing occurs.

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Learn more! Date: Mon, 30 Jan 2012 13:27:00 GMT

Your Cleaning Lady and the Nanny Taxes

Latest Updates from HomeWork Solutions Inc.

Do you have a regular person who comes to your home to provide housekeeping, maid or cleaning services? Do you know that this individual is probably your employee under common law and the Internal Revenue Code?

Any individual whom you employ to provide services in your home whom you pay directly AND whose total payments in the calendar year meets the IRS household employment threshold ($1700 in 2011 and $1800 in 2012) must receive a W-2 from the employer (family) and the employer must pay the payroll taxes.

Household employment taxes - known as the "nanny taxes" - include:

• Social Security & Medicare Taxes (13.3% of Gross Wages - employer may collect 5.65% from the employee via deductions.)
• State Unemployment Taxes where required.
• Federal Unemployment Tax (FUTA) where required.

The employer is legally obligated to pay (remit) both employee and employer portions of Social Security and Medicare taxes. Should the employer fail to collect this tax from the employee via periodic payroll deductions, the employer remains responsible to remit or pay the tax to the IRS. The household employee CANNOT remit their share of Social Security and Medicare tax independent of the employer.

Many families try to classify their weekly (bi-weekly, monthly) cleaning ladies as independent contractors. In the vast majority of circumstances, this is a total legal fiction. This usually only works if the worker is properly incorporated, bonded and licensed in the trade and maintains "corporate formalities."

If you wish to avoid this obligation, we recommend that you engage a cleaning service. The service will decide who to send to your home to do the cleaning, and you will avoid any payroll tax obligations. Examples of such firms are Merry Maids, the Maid Brigade, XYZ Cleaning Services, Molly Maids - you can locate by Googling "home cleaning service YourTown YourState." When you hire a service, you make your payments to Cleaning Services Inc. or Cleaning Services LLC - and not to Mary Jones.

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Learn more! Date: Wed, 25 Jan 2012 13:38:00 GMT

Free G-5 Domestic Payroll Tax Compliance Guide Available

Latest Updates from HomeWork Solutions Inc.

The US Department of State has issued non-immigrant visas to the personal attendants, servants, and maids of certain diplomatic and non-governmental staff members under G-5, A-3 and NATO-7 visa categories for many years. Guidelines for the sponsoring staff members were very broad, and subject to interpretation by the various sponsoring organizations.

In September 2009 the US Department of State issued new guidelines and recommendations to sponsoring organizations intended to standardize the basic terms and conditions of the G-5 domestic's employment. They also, for the first time, placed responsibility for the enforcement of these guidelines squarely on the sponsoring organizations.

HomeWork Solutions provides payroll and payroll tax services to hundreds of G-4 staff members working for non-governmental organizations such as the United Nations and the World Bank when they sponsor a G-5 domestic. We are recognized subject matter experts. We recently published a free e-book, G-5 Domestic Payroll Quick Start Guide, to help the G-4 sponsor better understand their obligations.

Learn more! Date: Mon, 23 Jan 2012 13:18:00 GMT

Complete "NANNY TAXES" BLOG

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