Household & Private Employment Changes For 2024

Every year Old State Staffing prepares a summary of new or updated employment tax laws and benefit information for employers of household or private staff employees.

Household Employee 2024 Wage Base

The IRS annually reviews, and adjusts as necessary, the wage payment threshold that requires families and private employers to pay Social Security and Medicare taxes. These tax withholdings are reported annually on a W-2. This threshold will increase to $2,700 for 2024.

Minimum Wage Increases

Minimum wage under federal law was raised in 2009 and remains at $7.25/hr, but states and local governments continue to set and increase minimum wage requirements at the local level. Governments are recognizing the need to ensure household and private employees are paid a living wage, and have begun the process of increasing wages over a series of years.

States and cities increasing their minimum wage rages in 2024:

Arizona
Statewide- $14.35
Flagstaff- $17.40

California
Statewide- $16.00
Belmont- $17.35
Burlingame- $17.03
Cupertino- $17.75
Daly City- $16.62
East Palo Alto- $17.10
El Cerrito- $17.92
Foster City- $17.00
Half Moon Bay- $17.01
Los Altos- $17.75
Menlo Park- $16.70
Mountain View- $18.75
Novato- $16.04
Oakland- $16.50
Palo Alto- $17.80
Petaluma- $17.45
Redwood City- $17.70
Richmond- $17.20
San Carlos- $16.87
San Diego- $16.85
San Jose- $17.55
San Mateo- $17.35
Santa Clara- $17.75
Santa Rosa- $17.45
Sonoma- $16.56
South San Francisco- $17.25
Sunnyvale- $18.55
West Hollywood- $19.08

Colorado
Statewide- $14.42
Denver- $18.29
Boulder County- $15.69
Edgewater- $15.02

Connecticut
Statewide- $15.69

Hawaii
Statewide- $14.00

Illinois
Statewide- $13.00

Maine
Statewide- $14.15
Portland- $15.00
Rockland- $15.00

Maryland
Statewide- $15.00

Michigan
Statewide- $13.03 (pending court action)

Minnesota
Statewide- $8.85

St. Paul- $12.25

Missouri
Statewide- $12.30

Montana
Statewide- $10.30

Nebraska
Statewide- $12.00

New Jersey
Statewide- $13.50

New Mexico
Statewide- $12.00
Las Cruces- $12.36

New York
Statewide- $15.00
NYC- $16.00
Long Island- $16.00
Westchester- $16.00

South Dakota
Statewide- $11.20

Vermont
Statewide- $13.67

Washington
Statewide- $16.28
Seattle- $19.97
SeaTac- $19.71

Tax Advantaged Healthcare Options

The IRS allows an employer to reimburse healthcare costs to their employee tax free via two Healthcare Reimbursement plans, subject to program guidelines. Qualified Small Employer Healthcare Reimbursement Arrangement (QSEHRA) is capped at $6,150 for individuals or $12,450 for a family in 2024. The Individual Coverage Health Reimbursement Arrangement (ICHRA) has no cap, but employers must ensure that their plan meets affordability rules. For either HRA, the employer must have a written plan (we have you covered there) and the amount of reimbursement offered must be noted on the W-2 form to remain tax free.

Other employee benefit plan limits for 2024 can be found here.

Tax Free Transportation Benefit

Employers may provide a mass transit tax free reimbursement of up to $315 monthly to their household employee, or a monthly reimbursement of up to $315 for parking. Both amounts have been increased by $15 from the prior year.

Paid Sick And Family Leave

Seventeen states (plus Washington, DC) now require some form of paid sick leave, safe leave, or family medical leave. Some states have created Paid Family and Medical Leave programs funded by payroll taxes, while others have have advanced regulations that offer paid leave to employees of smaller employers. In general these laws allow time off to deal with both the employee’s illness and medical appointments, and those of family members. Most laws require employees to make a reasonable effort to schedule paid leave so as not to unduly disrupt the operations of the employer. In other words, notice of medical appointments should be ample and, when possible, scheduled close to the beginning or end of the day.

Federal mandates for paid leave related to the coronavirus pandemic have expired, but many states now require paid or unpaid leave for employees to get tested, vaccinated, or to quarantine in the event of illness or exposure. Practically speaking, offering this leave is good for household and private staff employers, as employees without paid leave are more likely to come to work while ill and to risk getting others sick.

2024 Mileage Reimbursement

The 2024 IRS mileage reimbursement rate has increased to 67 cents per mile, up 1.5 cents from the prior year. Business use for a household employee may include running errands for the family and transporting children or a senior to appointments, activities and school. Routine commuting between your home and place of work is NOT considered business use, and is not typically reimbursed. If any commuting is reimbursed, this is considered taxable wages.

The IRS reminds taxpayers “It is important to note that under the Tax Cuts and Jobs Act, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses.” Old State Staffing recommends that mileage reimbursement be included as part of the employee’s employment agreement when an employee’s personal vehicle is used for work purposes.

Written Work Agreement

An increasing number of states and cities are requiring household employers to provide a written employment agreement at the time of hire outlining wages and benefits in English, and a language the household employee understands, if not English. Many other states and localities require that employers disclose in writing pay rates, either via a separate written notice or by outlining on a pay stub. Be sure to discuss with an employment expert or your placement specialist as it relates to your position.

Salary History Bans And Salary Posting Requirements

Currently 21 states and 21 local governments have salary history bans in place. To find out if you are covered by a salary history ban check here.

Several states also require employers to post salary ranges with any listed position to provide transparency and prevent discrimination in wage negotiations (notably, Maryland employers must provide a job applicant with the wage range for the position for which the applicant applied upon request). You should always post your expected salary range to ensure that candidates who apply are a good match for the skills required and compensation offered.

Benefits, 2024, Taxes, Employer 101, Employers, Employment, Household, Private Employment, Private Staff

At Old State Staffing, we simplify hiring private staff for families throughout Washington DC, Maryland, Virginia and beyond. Ready to hire? Call us or submit a new hire request. Need guidance? Book an introductory meeting with one of our staffing experts!

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