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Preventing Legal Problems The Easy Way:
The Law
Families who hire full-time, part-time or temporary workers to work in their home (i.e. nannies, nurses, housekeepers, chefs, etc.) are legally considered household employers. (Although many people want to treat their worker as an independent contractor - some will even insist on its legality - the IRS has declared this practice illegal).
As a household employer, families are required to withhold taxes from their employee's pay and remit those taxes - along with paperwork and some employer taxes - to the state and federal tax agencies each quarter. In addition, they are required to prepare and file special paperwork at the end of each tax year.
On top of the tax remittance process, there are a number of local, state and federal labor laws that affect most household employers. These labor laws are neither expensive nor burdensome to families - as long as they are addressed at time of employment. After the fact, they can be devastatingly expensive and time-consuming.
The above information was provided by Breedlove and Associates |
