Year-End Checklist for Household Employers
Follow this year-end checklist for household employers to make sure you have everything covered before tax season.
- Verify home address for all employees.
- Reconcile all vacation, sick and paid time off (PTO) balances for year-end payout or carryover.
- Although you may be exempt from FICA reporting, you may still be required to file
unemployment tax returns if you paid a total of $1,000 or more in a calendar quarter. Some
states have an even lower threshold.
- Send a reminder to employees to verify the social security numbers and addresses on their pay stubs.
- Account for any and all bonuses, cash and non-cash (ex: gift cards) gifts as they should be reported as
taxable income. The IRS counts these as taxable gifts between the employer and employee.
- Review taxable fringe benefits that must be posted into payroll for W-2 reporting. Capture all information such as relocation and bonuses.
- Check third-party sick pay (short or long term disability) postings to make sure you have captured all information required.
- Distribute new health and/or dental insurance cards.
- Verify Flexible Spending Account (FSA) balances to confirm that employees will have their total amounts deducted by the end of the calendar year.
Monitor Changes to Tax and Wage Laws
- Check Social Security’s maximum taxable wage. For 2020, the maximum amount of taxable earnings is $137,700 (in 2019 the amount was $132,900).
- Check for a minimum wage increase in your state for 2020 and plan accordingly.
Legal Disclaimer: this Year-end Checklist for Household Employers is intended for informational purposes only, and does not constitute legal information or advice.
We’re here to help with year-end checklist tasks. Feel free to call us at (800) 929-9213 or email [email protected] with your questions about your payroll, tax and wage responsibilities.
Also, download The Complete Guide to Household Payroll. It will help you every step of the way and explain everything you need to do. There’s even a handy checklist and payroll calendar at the end of the guide to use as references.
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Free Resources on Household Employment
- Nanny Tax Calculator
- Nanny Tax Guide
- Tax Forms
- Tax Calendar for Household Employment
- Free eBook Chapter: Managing Payroll and Taxes
- Payroll & Holiday Calendar
- Guides & Checklists
- Employer Responsibilities
- Domestic Workers' Rights
- Workers' Compensation Requirements
- Government Websites for Household Employers