| Did you know that if you pay your caregiver more than $1,500.00 per year
(adjusted periodically by the Federal Government) – you are considered to be
the employer and are responsible for Employer Social Security, Medicare,
Federal Unemployment and State Unemployment? The Federal Government (IRS) is
very clear about YOUR being the employer and that your caregiver is not a 1099
(or Independent Contractor) – go to:
http://www.irs.gov/businesses/small/article/0,,id=99921,00.html to read
more about the determination.
Did you know that By Federal law & in accordance with the Fair Labor
Standards Act, your nanny must be paid time-and-a-half for all hours over 40
worked in a given workweek? Even if your nanny is paid a weekly salary, you
must still declare an hourly and an overtime wage for her. The only exception
to this law is for a live-in nanny where room and board accounts for some
portion of the caregiver’s compensation.
Whether you use PTO to find your caregiver or not, you can still choose
the PTO Payroll Service. We’ll take care of all tax requirements and will
even send you statements of your payments whenever you request them. At the
end of the year you simply use our tax ID# to claim all of your eligible child
care expenses.
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"Thank you for all your help and assistance in the past few
weeks. You have been terrific in helping us get Sarah set up with taxes and payroll. We've never had to do this before, so your assistance has been
invaluable. Anytime you need a personal recommendation, let us know, we'll be more than willing to give one. Thanks again, for you wonderful
assistance!!!" May 2000 |
