Have you recently hired a private chef, a nanny, a housekeeper, estate manager, or other household employee to work in your home? You’ll need to get payment and tax details set up so they can be paid on time and accurately. Don’t be tempted to pay your employee ‘off the books’, either. This could cause problems later down the road. Here’s why.
It’s not worth the risk.
If you are caught without withholding proper taxes from your employee’s wages, you could end up paying big fines and backed taxes. This could calculate to hundreds or even thousands of dollars. It could cost you and that’s not a risk you want to take.
It could adversely impact unemployment and/or social security benefits.
If your employee leaves their job with you, unemployment benefits will only be based on the wages that you reported to the government. Your employee may not be aware of this, so if they go to file unemployment and reports her weekly wages with you, the numbers won’t add up. That means the earning amount will be underestimated and it will influence how much they get. In addition, it will also impact how much social security benefits they will get later down the road.
Not reporting wages to the government from your household employee is dishonest. It ends up cheating the employee out of full benefits later and it could negatively affect your standing as an honest employer, too.
At Household Staffing, we work hard to place the right employee in your home. Once you have found a match, it’s important to be a fair and honest employer by providing accurate wages with proper withholdings. If setting up your employee’s payroll is too time consuming or you simply don’t want to manage the administrative details, we recommend a few organizations like GTM Payroll Services and HomeWork Solutions to oversee all of the details.
Need to find a new employee for your home? We offer a 100% satisfaction guarantee so you can rest assured that we will place the highest caliber employee in your home. Contact us today to get the hiring process started!