The current pandemic is continuing to disrupt the world’s economy and millions of people have had to file unemployment in the last few months. If you are a household employer that has had to lay off a household employee, you may be wondering what the next step is.
First, it is important to note that if you have not been paying your employee on the books, there could be some problems ahead. Paying your nanny, housekeeper, or estate manager under the table means you were not paying unemployment tax. That means you could be subject to costly penalties.
If you have been paying your household employee on the books, then they should not have a problem getting unemployment benefits. That’s because you have paid unemployment tax and that goes into a pool that will fund benefits if they are needed.
Once they file, you will get a questionnaire sent to you from the state. This will ask you to explain the reason for reduced work hours or lay off. If COVID-19 was the primary reason for this, you should indicate this by stating that the household income has been reduced due to the pandemic and budget cuts needed to be made in the home. You can usually fill out this questionnaire online, but depending on the state, you may need to mail the response in. Once it is sent back, let your household employee know that it is completed and the date that it was done. If you do not respond by the state’s required date, you could incur fines or other run into other issues.
Our team at Household Staffing understands that it is a stressful time for both household employers and employees. We are here to help! For employees that have recently been laid off, we can help you find a new job! For employers, we are standing by to help you find new household help once you are able. Stay safe and stay healthy.