Household Employment Resources for Accounting Firms and CPAs

Not Worth the Risk: The Very Real Possibility of Losing Clients over Nanny Tax Issues

There are several risks involved when a family hires an employee to work in their home even if you or your client are trying to get nanny taxes right. But the dangers extend beyond fines and penalties for your client’s potential non-compliance with household employment laws. Here are three tax and payroll issues that can trip up you and your client.

The Risks of Nanny Tax Mistakes

There are many risks involved when a family hires an employee to work in their home even if you and your client are trying to get nanny taxes right. The dangers extend beyond fines and penalties. You could lose your client over nanny tax mistakes. But there is a better way.

Why Referring Household Clients to a Business Payroll Firm is a Bad Idea

Referring your families with household help to a business payroll firm creates risk for your clients that may come back to you if they get fined or penalized for non-compliance. There are nuances to household payroll that a firm focusing on businesses may miss.

Infographic: A Guide to Nanny Tax Compliance for Accountants and Their Clients

Review our infographic on common nanny tax mistakes that lead to non-compliance, fines, and penalties. Get seven key steps to following the tax, wage, and labor laws that apply to household employment. Download/view the infographic.

Why the Nanny Tax Threshold Matters

Wages paid to domestic workers are often subject to the “nanny tax” threshold, but clients who employ these workers sometimes forget about the nanny tax. Here’s how and when the threshold applies and guidance on how to keep on top of taxes for household workers. (AccountingWeb)

The Big Risks of ‘After-the-Fact’ Nanny Taxes

Figuring out nanny taxes and payroll for your clients with household help can be a hassle, not to mention time-consuming. But you need to keep your clients compliant so calculating nanny taxes “after the fact” may seem to be a way you could save time and energy that can be spent elsewhere. However, there are big risks involved when going this route. (Accounting Today)

Are You Prepared for the New Schedule H?

For this tax season, there is an updated Schedule H for your clients who employ household help. It reconciles pandemic-related paid leave provided to their workers last year under the Families First Coronavirus Act. Here is what you need to know. (AccountingWeb).

Advising Clients Hiring Household Help During the Coronavirus Pandemic

The COVID-19 pandemic has placed a renewed focus on household employment. Hiring private, in-home care may be seen as a safer option for childcare than a daycare facility or summer camp. In fact, with many daycare centers and camps closed or operating with limited availability, a private caregiver may be the only viable childcare option for parents who are returning to work in their offices. Here’s what CPAs and their clients need to know when hiring an employee. (Accounting Today)

What’s New in Household Employment Since COVID-19 Began

Here is what’s changed and what’s new in household employment to help you stay up-to-date and advise your clients who may have hired (or plan to employ) someone to work in their home. (AccountingWeb)

How to Keep on Top of Taxes for Household Workers During COVID-19

In the household employment industry, the COVID-19 pandemic is crystallizing the importance of legally paying employees. As a tax professional, here’s what you need to know to help your clients stay compliant. (AccountingWeb)

Navigating Household Worker Employer Tax Breaks Related to COVID-19

If your clients employ household workers from nannies to senior caregivers, you should know what tax benefits are available to them in recent legislation related to COVID-19. Here is what you, your clients, and their workers need to know to take advantage of tax breaks, paid sick and family leave, and expanded unemployment benefits. (AccountingWeb).

How to File Schedule H for Your Clients with Household Employees

As you’re gathering documents this tax season and preparing personal tax returns, you may come across clients who have employed domestic help in the past year. These clients may need to attach Schedule H with their returns. Here’s what you need to know about completing Schedule H (AccountingToday).

Nanny Tax Filings are Not Something to Sleep on This Year

With a January 31 deadline to issue W-2s and complications that can arise if your client hasn’t been keeping pay records, nanny taxes are something to be dealt with now and not in the middle of your busy season. Here’s how to get ready to handle your client’s nanny taxes and be prepared for any curveballs that come your way (AccountingWeb).

Avoid Nanny Tax Headaches During Tax Season

It can be straightforward to prepare and file all the year-end forms associated with household employment. However, a lack of preparation, knowledge, and/or communication can cause unneeded stress during your busy season. Here’s what can happen and best practices to avoid these hassles (AccountingToday).

Clients Hiring Senior Care May Owe Nanny Taxes

Don’t be fooled by the term “nanny taxes.” They don’t just apply to nannies. Any person who works in someone else’s home – including senior caregivers among others – could be considered an employee. Here’s how to determine whether your client owes “nanny taxes” and needs to follow the tax, wage, and labor laws around household employment (AccountingWeb).

8 Questions for Clients Hiring Their First Nanny

Your clients may want to pay on the books but are unsure how to get started as this is their first household employee. Here are eight questions to ask to make sure you and your client understand their tax and payroll obligations when hiring a nanny and what it takes to be compliant with tax, wage, and labor laws (AccountingWeb).

Beyond Taxes: How Wage Laws Can Pose a Serious Risk to Clients with Household Help

While you may have “nanny taxes” covered for your clients who have hired household help, wage laws can cause serious compliance problems — including fines, payment of back taxes with interest, and potentially legal action by the employee — for these families. Here’s how problems develop and how you can help your clients prevent them (AccountingToday).

How to Handle a Client’s Year-End Nanny Taxes

If your client hasn’t been maintaining accurate time and pay records, figuring out nanny taxes can be especially time-consuming and frustrating. That’s why it’s recommended to get started with nanny taxes sooner rather than later. Following this step-by-step guide will also help keep you organized and on track(AccountingWeb).

Challenges & Risks of ‘After the Fact’ Nanny Taxes

Calculating taxes ‘after the fact’ means compiling three month’s worth of payroll and tax data, figuring out your client’s tax obligation, and remitting that amount at the quarterly deadline. This includes the employer portion of FICA (Social Security and Medicare) and unemployment taxes (federal and state). Seems easy enough. So what can go wrong? (AccountingWeb).

7 Steps to Help Clients Follow Nanny Tax Laws

If your client has or is hiring an employee, like a nanny or housekeeper, to work in their home, there are a few actions they should take to stay out of trouble with federal and state agencies. Here are some practical steps to make your (and your client’s) life easier come tax time (AccountingWeb).

7 Compliance Steps for Clients Who Hire Household Workers

Even an experienced accountant may overlook some of the nuances to tax and labor laws that affect clients who employ nannies or other household help. These mistakes can lead to fines and penalties for the family, an IRS audit, or a lawsuit from a disgruntled employee. Here are seven steps to help avoid those risks and keep your clients compliant (AccountingWeb).

Partnering with GTM Payroll Services

Providing payroll services for clients with household employees can be time-consuming, taking you away from your core practice. However, outsourcing means finding a firm you can trust to match your commitment to your clients. GTM Payroll Services is your ideal partner. We have specialized in household payroll ever since our founding more than 30 years ago. When you partner with GTM Payroll Services, we take on all the administrative tasks associated with household payroll while providing your clients’ payroll and tax information through a secure, online portal.

Interested in learning more? Contact Laurie Sieling at (518) 836-2511 or [email protected].

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