HomeWork Solutions nanny tax compliance services relieve families of much of the payroll tax reporting drudgery. However, it is important that families understand that they remain responsible for workplace record keeping, FLSA compliance, and other regulatory concerns.
EMPLOYER Responsibilities Include...
- Nanny Employment Eligibility Verification: The employer is responsible to verify that the newly hired worker is eligible for employment in the United States. Employers are required to complete the Form I-9 for all employees at start of employment, and to retain it with their permanent personnel records. HomeWork Solutions offers e-Verify, the DHS employment eligibility verification service, for a reasonable administrative fee. The e-Verify may only be performed at time of hire, and employers who opt for this service are legally obligated to utilize the service for all future new hires.
- Workers Compensation Insurance: Requirements for workers compensation insurance coverage vary by state. The employer is responsible for workers compensation insurance compliance. This is NOT covered in your Unemployment Insurance Tax. We recommend you discuss this with a licensed casualty insurance agent prior to the employee's first day of work.
- New Hire Reporting to HomeWork Solutions: Employer is responsible to promptly advise HomeWork Solutions of all personnel changes. HomeWork Solutions will complete the required state new hire reporting within 5 days of your report to HomeWork Solutions. New Hire Reporting is time sensitive - don't be penalized for a late report to your state.
- Fair Labor Standards Act (FLSA) Compliance: There are many aspects of wage and hour law for which the employer, rather than HomeWork Solutions, remains responsible. These include:
- Minimum Wage Compliance: This is discussed in more detail in our FAQ: Minimum Wage Compliance.
- Overtime Payment Compliance: Also discussed in our FAQ: Minimum Wage Compliance. Pay particular attention to how you describe compensation in your written work agreement.
- Time Tracking Compliance: Discussed in detail in our FAQ: Nanny Time Tracking.
- Employee Classification: Nannies and the vast majority of other household employees are hourly, non-exempt employees, subject to coverage under the FLSA. This is discussed in more detail in our FAQ: Nannies: Hourly, non-exempt employees.
- Wage Reporting to HomeWork Solutions: Some employers choose to pay their household employee(s) directly. Employers enrolling for our NaniTax Tax Preparation Service or NaniTax Plus Tax Remittance Service are responsible for the prompt and complete quarterly reporting of the wage payments the employer made directly to his/her employee(s).
- Tax Filing: Employers enrolling for our NaniTax Tax Preparation Service are responsible for the timely reporting and payment of the quarterly and annual payroll taxes and reports. Employers enrolling for our premium services, NaniPay Payroll Service or NaniTax Plus Tax Remittance Service, remain responsible for funding the payroll taxes consistent with the individual service agreement. HomeWork Solutions will make the appropriate tax remittances for premium service clients and provide quarterly confirmation of the specific taxes paid.
- Timely and Accurate W-2 Disbursement: Employers are specifically responsible to insure that the employee name and Social Security Number (or ITIN) in our records is accurate, and that the employee's address is current. This is a particular issue with employees who were discharged earlier in the year.
NaniTax Tax Preparation Service Clients are mailed all copies of the Forms W-2 and are responsible for timely delivery to their employees.
Premium service clients, either NaniPay Payroll Service or NaniTax Plus Tax Remittance Service, have all Forms W-2 delivered both to the employer's e-Filing cabinet and to the employee's online account (when such account has been established by the employee). If you employee has not activated their online account, you are responsible to provide the Form W-2 directly to the employee.
» Employee Online Account Enrollment.
- Prepaid Service Fees: HomeWork Solutions will cheerfully refund any unused service fees upon service termination.
- Transfer of Account: Employers who wish to transfer their account to another provider must provide written authorization for HomeWork Solutions to share confidential account information to a third party.
- Permanently "Out of Business": Employers who pemanently cease employment are responsible for the proper closure of all state tax accounts. HomeWork Solutions will prepare and submit this correspondence (and any follow on activities related to this) upon request for a modest administrative fee.
- Year End Tax Documents: HomeWork Solutions will assume responsibility for generation of year end tax documents, including Forms W-2 and 1040 Schedule H for employers who terminate services mid year. Fees for year end tax prepation, if not already pre-paid, will be deducted from any refund due or, when no refund due, collected at time of service termination.