Here’s What You Need to Know for 2013 Taxes
HAPPY NEW YEAR!
NEWS & NOTES FOR 2013
Here’s what you need to know for the new year:
- The Payroll Tax Holiday Has Expired. The social security tax has reverted to its traditional 6.2% (it was temporarily reduced to 4.2% in 2011 and 2012 in an attempt to stimulate consumer spending). The change will decrease take-home pay for all U.S. workers. Your full-time nannies will see a change of about $10-$15 per week, depending on their income level.
- The FICA Reporting Threshold Did Not Change. The $1,800 threshold has been extended through 2013. Families who pay a worker less than that amount are absolved of the FICA reporting responsibilities under the “casual babysitting exemption.”
- The Federal Mileage Reimbursement Rate Has Increased. The rate for mileage reimbursement increased by one penny per mile. It’s now 56.5 cents for each mile an employee drives on the job.
ANNOUNCING A NEW SIMPLE SOLUTION TO WORKERS’ COMPENSATION INSURANCE
We are very pleased to announce a major breakthrough in our long-time quest to provide families with simple, affordable access to workers’ compensation insurance.
We’ve always educated families on workers’ comp and guided them to the best solution for their situation/state. However, in recent years, the solution options have dwindled. More and more families have complained that finding an affordable, stand-alone policy is difficult. In some states, it’s next to impossible.
So, we decided to take control of the situation. After more than a year of research and meetings and due diligence, we have teamed with PMC Insurance Group and an A-rated underwriter to help them create HomeStaffPROTECT — the first and only workers’ compensation insurance product custom-built to meet the unique needs of nanny employers.
Since we worked closely with PMC Insurance Group to develop HomeStaffPROTECT, Breedlove clients will have exclusive access to this stand-alone workers’ comp product.
It will be extremely convenient. With instant online quotes and a pre-filled online application (pre-filled from their Breedlove payroll data), obtaining a workers’ compensation policy will take families less than 5 minutes.
If you’re wondering about cost, you’ll be pleased to know that HomeStaffPROTECT will be a low-cost leader. PMC is a wholesale provider and Breedlove does not take any commissions or mark-ups or charge any administrative fees. So, our mutual clients can rest assured that they’re getting the best price possible.
Finally, we’ve gone to great lengths to ensure that customer service and claim support are handled with the same level of expertise and responsiveness we deliver on our payroll service.
HomeStaffPROTECT is licensed in 24 states (which includes all of the “problem” states) with more states coming soon. In all of the other states, we’ll continue to educate and guide as part of our setup process. The bottom line is we can now ensure — one way or another — that families in every state have a convenient, cost-effective solution to workers’ comp.
We’re excited to bring the combination of high quality, high convenience and low cost to the workers’ compensation insurance market as a way to help families and nannies receive this important protection.
If you or your families have any questions about workers’ compensation insurance, just let us know. We’re here to help.
Guest Blogger, Tom Breedlove
QUICK TAX FACTS
$1,800: Annual wage threshold for Social Security & Medicare (“FICA”) reporting
$1,000: Quarterly wage threshold for Unemployment reporting (some state thresholds are lower)
$2,500: Total childcare tax breaks available for families
1.5: Overtime rate of pay when work week exceeds 40 hours
$0.565: Federal mileage reimbursement rate
$7.25: Federal minimum wage (some state rates are higher)
$2: Approximate daily cost to have Breedlove & Associates handle all payroll and tax compliance duties with no work and no worry.