Payroll
This service is available to all clients regardless of whether they hired
their Caregiver through PTO.
The specifics:
- PTO submits all salary and hourly amounts to our provider each Monday. You can choose to pay your caregiver weekly or bi-weekly.
- If you pay your caregiver the same amount each week, PTO will use that
amount unless notified otherwise.
- If you pay your caregiver hourly and the hours vary from week to week
you must notify PTO of your nanny's hours by Monday morning at 9:00 am for
the previous week.
- Send your payment for your caregiver’s wages plus 10%** (to cover your
employer tax and insurance responsibilities for Social Security, Medicare,
Federal Unemployment and State Unemployment) to PTO.
- PTO processes the payroll and mails out checks the following Thursday. Or your
caregiver can choose direct deposit at no additional charge. If your
caregiver chooses direct deposit, funds will be automatically deposited into
her account on Friday.
- The client’s payment must be received in our office two days prior to the
nanny's payroll - Wednesday. If payment is not received in our office in
a timely fashion the Federally mandated penalty of $50.00 will be assessed to
the client’s account (see the “other fees” section below).
- PTO takes care of withholding taxes for the caregiver and making the
weekly deposits of Social Security, Medicare and income tax withholding.
- PTO takes care of quarterly and annual reporting to the IRS, Federal
Unemployment and State of Arizona Unemployment Insurance agencies as well as
the caregiver’s end-of-year W-2.
Fees & Deposits
- Annual Fee: The cost is $495.00 for Direct Deposit or $545.00 for
mailed paper checks – paid at the start of service. This fee covers payroll
for fifty-two weeks for one caregiver at a time. If the parent changes
caregivers during the year, there is a $40.00 fee. There is a $75.00 set-up
fee the first year of service per family. At the end of the year there is a
$45.00 fee per caregiver per year that covers W2's and year end statements
for the family.
- Other Fees: Due to Federal guidelines on payroll accounts and because
your care giver is being paid at the same time that your payment is due at
PTO, the following additional fees and rules are in effect with each payroll
account:
- Deposit: Client is required to place and maintain the equivalent of one payroll on deposit with Parent’s Time-Out, Inc. This money will
remain on account and be used by PTO in the event that the client defaults
on their payment or incurs any late or return check/draft fees. If the
deposit is used, the client is responsible for replenishing the deposit
before PTO will resume payroll for client’s caregiver. This money will be
returned in its entirety within sixty days of the conclusion of service
(this includes all renewal contracts), less any fees or
monies due to PTO under this contract.
- Late Fees: A late fee of $50.00 will be charged every week that the
client does not have ALL of their payroll monies in PTO’s offices in a
timely fashion. This fee is cumulative and will be assessed every week
until the client’s payments are paid in full.
- If the client’s account is not paid in full (deposits, late fees, return
check/draft fees and payroll monies), PTO will not process payroll for the
client’s caregiver.
- Return Check Fee: Any check or draft returned by client’s bank will be
assessed a fee of $25.00. In addition, if the return of the check or draft
causes client’s payment to be late, late fees will be assessed each week
until client is paid in full.
Length of Agreement: The length of the contract is 52 weeks. There
are no refunds for services cancelled prior to the end of the contract year.
PTO retains the right to cancel this contract if client’s account is in arrears
for more than 30 days and there will be no refund of the program fee.
Social Security and Medicare: The 10%** that the client pays above the
caregiver’s wages covers the employer portion of Social Security (6.2%) and
Medicare (1.45%) and is being withheld and submitted weekly to the Social
Security Administration. PTO also takes care of all Quarterly and Annual
reports.
Federal and State of Arizona Unemployment: The 10%** that the client
pays above the caregiver’s wages covers Federal and State (Arizona) Unemployment
Insurance (.8% and 1.55% respectively) and is being paid weekly to the
agencies. PTO takes care of Quarterly and Annual reporting as well.
Worker's Compensation, Liability and Indemnity Bond: The payments to
PTO do not include coverage for Worker's Compensation, Liability or Indemnity
Bond. Please contact your insurance agent for your homeowner's policy to
discuss these items.
**10% is current charge and may change from year
to year as employer tax liabilities for Social Security, Medicare, Federal
Unemployment or State Unemployment change.
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Last updated:
December 18, 2011
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