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Summer Help Financial Planning

Summer is a busy – and fun – time of year for families and individuals from all walks of life. This time of year is one of the most popular times to onboard new household employees, too. Maybe you need a summer nanny to help with the kids, as you travel to your summer cabin or on your family vacation. Perhaps a housekeeper to stay on top of all the messes that are bound to happen this season will be helpful. Or maybe you need a gardener to keep your property pristine or a private chef to do all of the cooking and family menu planning. In addition to your employee’s salary, there are some other things to remember.

Don’t pay them ‘under the table.’

Hiring someone to work in your home makes you an employer. They are not an independent contractor that sets their own schedule or job duties. If you pay them ‘off the books’ in cash, this is illegal and could mean you have hefty fines or fees to pay from the government if you’re found out. Not to mention, your employee will have no coverage for unemployment if they end up needing it later, and no history of official work should they need to apply for a loan or purchase a home or car. It is always best to pay your employee legally from day one, with all federal and local taxes withheld. Not sure where to begin? We partner with payroll and tax companies that specialize in household employment.

If they work overtime, pay them properly.

There may be times when your employee needs to work over the standard 40-hour workweek. The Fair Labor Standards Act states that household employees who live out of your home should be paid 1.5 times their hourly wage if they work over 40 hours per week. If they live in your home, they should be paid overtime at their regularly hourly rate. If you are paying your employee weekly or in a lump monthly sum and your employee works overtime, you could risk a labor dispute. Some states have rules and exceptions surrounding this, so make sure to research and ensure you’re following the law.

Think about benefits.

If you are only hiring a temporary summer employee, you probably don’t need to worry about offering benefits or health insurance, as it is not required. But, if you are able to provide temporary benefits, such as tuition reimbursement or reimbursed medical costs, this could be a great way to attract and retain the best of the best.

Now is the time to start your search for a summer employee. Contact our attentive team at Household Staffing today to start the hiring process.

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