Summer is almost here and many households are planning to onboard seasonal help to provide an extra hand with travel, childcare, entertaining, or property maintenance.
Having experienced domestic staff to support throughout the summer can make the season more enjoyable. It’s important to remember, however, that even temporary or seasonal staff are considered employees under federal and state labor laws.
That means, legal pay and tax withholdings are required. Here are some of the most important must-knows as you consider building your summer support team.
Fair & Legal Pay
Domestic employees are not independent contractors.
Classifying your household employee as an independent contractor is not accurate. If you determine your employee’s schedule, outline their duties and responsibilities, and designate how the work is performed, that person is an employee.
If you misclassify your employee, you risk paying back taxes, penalties or interest, wage claims, and workers compensation problems.
Write a detailed work agreement.
Whether you’re hiring a seasonal employee or plan to transition your temporary employee into long-term work, a detailed work agreement is the best way to ensure all details of their role are clear.
Your employment agreement is a written document that outlines employment dates, duties and responsibilities, compensation and benefits, payment schedule, housing arrangements, travel expectations, confidentiality agreements, and more.
You can customize the work agreement to the specific roles in your home, as each home has different requirements. Both you and your employee should review the contract in detail and sign it before their first day of employment with you.
This avoids confusion and creates a way for clear, open communication from day one.
Know tax and workers comp requirements.
If you pay your household employee more than $3,000 this season, you are required to withhold and remit applicable taxes.
As a household employer, you’ll need to issue year-end tax documents and report wages accurately. Some states may require state income tax withholding or other paid leave contributions, so it’s important to know what your state requires at the time of hire.
Some states also require domestic employers to carry workers compensation insurance once employees work a specific number of hours or reach a specific wage threshold. This type of insurance helps protect both you and your employees in the event of a workplace injury, accidents in the home or on the property, travel-related injuries, and more.
Don’t neglect overtime rules.
Summer is often a very busy season for families and their staff. Summer schedules could include weekend coverage, extended travel days, evening events, or longer childcare hours.
In these cases, be sure to stay compliant with all overtime laws. The U.S. Department of Labor states that domestic staff are generally covered by the Fair Labor Standards Act (FLSA), which requires that live-out staff must receive overtime pay (1.5 times regular rate) for all hours over 40 in a workweek.
Live-in staff are exempt from federal overtime pay, though they must still be paid the minimum wage for all hours worked.
If you provide a salary for your summer employee, remember that domestic workers cannot be paid a flat weekly salary to avoid overtime. The salary needs to be broken into a regular hourly rate to ensure overtime is paid accurately.
Why Household Staffing
Hiring summer staff is the best way you can support a busy time of year, ensuring everything runs smoothly. By understanding the requirements as an employer, you can create a professional and positive experience both for you and your employee.
Our outstanding team at Household Staffing is experienced in placing experienced in-home summer staff in homes across the country.
We take the time to get to know your specific household requirements so we can find an employee that matches. Our 98.7% placement guarantee speaks for itself.
Contact us today to expand your summer support team!
