Old State Staffing | Private Employer

Household Employer Calculating & Filing Taxes

What To Know About Taxes As A Household Employer

When it comes to working in someone’s home, working arrangements can often be casual and an employer may prefer to pay an employee’s wages in cash to avoid the effort of setting up a formal employment relationship and paying taxes. This grey area can lead to confusion for both parties, but determining if a household worker is considered an employee can lead to many benefits to the employer, as well as the employee. Most private employers hire through an employment agency that formalize your employment relationship, and utilize a payroll service company to handle paying an employee’s compensation, keeping track of financial documents and filing taxes on behalf of the employer. However, some employers wish

Professional Meeting With Employee For Annual Review

Importance Of Annual Reviews For Private Staff

Why It Matters Household staff does a lot of work in the employer’s home. When employees know that they can expect an annual staff review, most look forward to an honest assessment of his or her job performance each year. In fact, annual evaluations often provide unique opportunities that can lead to important discussions about many of the daily happenings that fell by the wayside. Moreover, periodic reviews offer the perfect private moment for credit to be given where credit is due. It is exactly the time for someone in a management role to sing praises that staff members have already earned. Since some domestic helpers primarily work outside the house, review accolades are important

Reviewing Tax and Employment Law With A Client

14 Steps To Ensure Household & Private Staff Tax/Labor Law Compliance

If you are hiring a household employee, it’s important to understand your obligations as an employer. You must file all applicable tax forms, Social Security, Medicare, federal and state unemployment insurances and income taxes. These obligations apply to all full-time and part-time employees that you expect to pay over $2,600 (2023) in the course of a calendar year. Our Recommendations To Ensure You Are Compliant With Federal & State Law: 1. Obtain Household Employer Tax IDs (Federal And State). In order to report child care employment taxes and issue employee tax statements, you must obtain an employer identification number (EIN) from the IRS. Your state will require you to obtain a separate number for state

Paying Estimated Taxes If Your Employer Does Not Withhold Income Taxes

If you are working as a household or private staff employee, it is important to understand what taxes you will need to pay. It is easy to feel confused about what you need to pay and when. This is especially true if your employer does not withhold income taxes from your paychecks. Here are some important tips: Determine Your Taxable Income In order to know what you need to pay, you must estimate your taxable income for the year. To get this number, you will need to reduce your gross income by all of the deductions you think you will claim on your taxes. The amount of deductions and tax credits will reduce the amount