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Hi there! GTM Payroll Services offers both stand-alone workers' compensation policies as well as bundled packages with payroll/tax services. It's definitely worth the inquiry if you're having trouble finding coverage elsewhere.
Workers' compensation is required for household employees in both DC and MD - I would have to agree that it is something to highly consider even when it is not required. GTM is licensed to setup, maintain and audit these policies in-house for youl stand-alone or with payroll/tax services.
Hi everyone! I'd strongly encourage you to read IRS Publication 926, which explains the various requirements of anyone who hires someone to work in their home (nanny, housekeeper, babysitter, chauffer, chef, personal assistant etc.).
It is extremely important that you abide by Federal and State laws as a household employer to avoid hefty penalties/fines in the event of an audit. They do happen!
And for those who do not see the benefit of putting an employee "on the books," here are some things to keep in mind: https://gtm.com/household/benefits-of-being-paid-on-the-books/.
Hope this helps. Please feel free to contact GTM with any questions!
It is extremely important that you abide by Federal and State laws as a household employer to avoid hefty penalties/fines in the event of an audit. They do happen!
And for those who do not see the benefit of putting an employee "on the books," here are some things to keep in mind: https://gtm.com/household/benefits-of-being-paid-on-the-books/.
Hope this helps. Please feel free to contact GTM with any questions!
If you're looking for a full-service like Homework Solutions with cost savings, we hope that you'll consider GTM Payroll Services!
Hi there!
The state of DC requires household employers to obtain workers' compensation insurance if they have anyone working 240 hours in a given quarter or an average of 128.46 hours per week. This is separate from your typical homeowners and umbrella policy, as they do not cover domestic workers in the event of an injury.
In the case of nanny shares, each family would need to obtain their own policies to ensure there is coverage where the work is taking place.
GTM can help you if needed, so feel free to give us a call. Best of luck!
The state of DC requires household employers to obtain workers' compensation insurance if they have anyone working 240 hours in a given quarter or an average of 128.46 hours per week. This is separate from your typical homeowners and umbrella policy, as they do not cover domestic workers in the event of an injury.
In the case of nanny shares, each family would need to obtain their own policies to ensure there is coverage where the work is taking place.
GTM can help you if needed, so feel free to give us a call. Best of luck!
If you're also looking for payroll/tax services, GTM offers background checks of up to 5 different screenings. I hope this helps and best of luck!
I work with GTM Payroll Services who has specialized in household employment for 25 years. Ultimately, the candidate is saying that she'll pay her own income taxes as this is optional until she files her W-2 at the end of the year. She is asking for you to cover her required taxes (Social Security and Medicare) so that she will take home the salary amount that you have negotiated. You would take the weekly salary and multiply it by 7.65%, and that is the amount that you would add on top of the salary to make this happen. Essentially, you'd be paying the employee's portion as well as your own employer portion of Social Security and Medicare taxes. We've set this up for a good portion of our clients if you need further guidance. Hope this is helpful and best wishes!
Here is the link to GTM Payroll Services' "Nanny Tax Guide" in case you find this to be helpful: http://gtm.com/household/resource-center/nanny-tax-salary-guide/.
We can also provide a free consultation to educate you on your obligations as a household employer if interested. Best of luck!
We can also provide a free consultation to educate you on your obligations as a household employer if interested. Best of luck!
This is actually very common. Unfortunately, the penalties would fall on you, as the employer, if it is determined that you did not comply with state and federal law.
All household employers are required to pay taxes based on the employee's gross earnings. Additionally, they must withhold the required federal taxes of Social Security and Medicare from the employee's wages, or pay them on their behalf once $1,900 or more is paid ($2,000 in 2016).
Lets say your employee decides to apply for unemployment benefits upon termination. If the state does not see the wages reported in their system, and required taxes are not paid accordingly, you will be subject to fines as well as back tax work to bring everything current.
Additionally, you and the employee are required to file specific tax forms if the above threshold is met at the end of each year. Again, if it is determined that you and the employee did not comply by law, your employee may have future wages garnished by various tax agencies.
GTM has specialized in household employment for 25 years, and have dealt with similar cases after such penalties took place. If you're interested in learning more about your obligations, please feel free to contact us so that we can see how we can help!
All household employers are required to pay taxes based on the employee's gross earnings. Additionally, they must withhold the required federal taxes of Social Security and Medicare from the employee's wages, or pay them on their behalf once $1,900 or more is paid ($2,000 in 2016).
Lets say your employee decides to apply for unemployment benefits upon termination. If the state does not see the wages reported in their system, and required taxes are not paid accordingly, you will be subject to fines as well as back tax work to bring everything current.
Additionally, you and the employee are required to file specific tax forms if the above threshold is met at the end of each year. Again, if it is determined that you and the employee did not comply by law, your employee may have future wages garnished by various tax agencies.
GTM has specialized in household employment for 25 years, and have dealt with similar cases after such penalties took place. If you're interested in learning more about your obligations, please feel free to contact us so that we can see how we can help!
If you're looking for payroll and/or tax help for household employment, GTM offers background checks as an additional employer benefit. We can take a complex situation and simplify the whole process for you - from helping you determine if your candidate is a good option for your family, to making it extremely easy for you to be compliant by law.
Hi there - I'm hoping our tax calculator may help you determine some wage/tax figures for budgeting purposes: https://secure.gtmassociates.com/calculator.aspx. Please feel free to contact us at GTM should you need more assistance!
Hi there! Once you find a nanny, there are 2 thresholds to keep in mind. The first one is $1,000 in a quarter (3 month period) - Once this amount is paid to the employee, you are required to contribute to unemployment insurance which is a required tax for household employers. The other one is $1,900 throughout the current tax year - Once this amount is met, the employee is required to pay Social Security and Medicare taxes from all wages paid; You as the employer are required to match Social Security and Medicare, as well as unemployment insurance; Additionally, you'd be required to provide them with a W-2, and you'd be required to file a Schedule H as a household employer. A W-3 Wage transmittal and W-2 copy would also need to be filed to the Social Security Administration accordingly. Typically, health care is not something you are required to offer, but some states do require household employers to provide it to their domestic workers. I hope this helps!
Workers' Compensation is something that we strongly recommend for all of our clients to obtain, for their own protection as a household employer. Although it may not be required in your state, this policy will cover the medical expenses incurred in the event an employee is injured while working in your home. Additionally, it would cover partial of the employee's wages in the event he/she is unable to work for a period of time due to the injury. If you're looking for assistance in streamlining your payroll, tax and insurance needs, we hope that you'll consider GTM Payroll Services!
GTM Payroll Services can help you. If you're looking to get caught up in paying back taxes for wages paid in 2014, we can definitely help with that. And we do offer a continuous service going forward as well. Go to www.gtm.com for more information.
What you've heard is true -legally you are both considered employers and would be setup separately with tax identification numbers and be responsible for tax filings. Your employee would receive two W-2s at the end of the year- one from each family. You are both compensating the employee and have control over her performance and duties. If you do some additional research, you'll see that is the case.
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