Have you recently hired a nanny? Maybe you are looking for live-in housekeeper, estate manager, or personal chef to join the staff of your home. Hiring a household employee makes you an employer and that means you are required to pay them accurately and on time – and that includes withholding and paying appropriate taxes. But don’t be tempted to pay them ‘under the table’ or ‘off the books.’ That is not only unethical, but it’s illegal and it could cost you.
Unfortunately, a lot of people don’t think it is a big deal to pay their in-home employees off the record. But this could be a huge mistake. If you don’t pay your employee properly, you could be liable for backed taxes or tax evasion. Not to mention, if your employee goes to file unemployment in the future, they could risk not getting the benefits that they deserve, because the government will have no record of their employment with you. In addition, when it comes time for them to retire, they won’t be able to get their full benefit amount, because there will be income that wasn’t reported.
Managing your employee’s payroll can be confusing. It requires setting aside significant time to research the various tax and payroll laws. Is this something you don’t have time for? We understand. That’s why Household Staffing partners with household payroll and tax companies that can help get your employee set up with the right paperwork for taxes and regular payroll filing. We can help answer some basic questions about the process, then will put you in touch with our partners that can do everything for you.
It’s simple: household payroll and taxes can be hard to understand and difficult to keep up on. Tax laws change regularly and working with an expert that follows these things will give you the peace of mind you need knowing your employee is paid accurately and that you are not making any mistakes that could cost you later down the road.
If you are searching for a new employee to work in your home, we can help find the right person for you. Once you find the right match, we will go over any questions you have about the payroll and tax process to ensure you have the details you need. Contact us today to learn more!