November 24, 2014 Blog By admin No Comments

7 SECRETS TO KEEPING A GREAT NANNY

Some families keep their nanny for years, while others go through a string of nannys, leaving children confused. It’s a lot of work finding your dream nanny, but the hardest part is after the hire, developing a strong ongoing relationship. Think about your own work environment and how your boss treats you. Realize that she’s a professional in her own right.

1. Does she know you appreciate her? Express your appreciation to your nanny out loud frequently, and give her respect and support, especially in front of the children. Don’t allow your children to be disrespectful to her and never speak unkindly to her. Zoe from Unnecessary Wisdom tells the story of her own part time nanny job and a boss who hosted an executive company Christmas party. She invited Zoe to attend and hired a sitter for the event. She raised a toast and asked her husband and Zoe  to stand, announcing: “To my husband and Zoe – the two most important people in my life. Without you, I wouldn’t be able to do what I do.” Zoe recounts her undying devotion to this family for years afterwards.

2. Are you really Communicating? Take time to establish regular communication routines with your nanny, daily, weekly, monthly and annually. Take 15 minutes weekly to review her plans and schedule for the following week. Share developmental goals, ideas for the household, your frustrations, and listen to hers as well. Initiate a Nanny Log and ask her to make notes daily and actually read them, occasionally leaving notes of your own or give written praise for a job well done.

3. How do you resolve conflicts? Think before you speak. Focus on creating a win-win solution, not on being right. How can she effectively play with your children, dance with them, sing to them, cuddle with them, put them to sleep if you yell at her or give her the cold shoulder? The fingerprints on the microwave may be bothering you. You know it’s silly and not worth mentioning, because you’re OCD, and you don’t want to rock the boat because she’s home with your baby all day. She already knows something is wrong, but can’t get you to tell her. The baby knows too. It could be something more serious, and I know it’s hard for you to bring it up, but after the first time, it gets easier. The process of resolving conflict will actually bond you both closer together when done quickly, before it festers. Take care of it the same day it occurs, or as soon as possible.

4. Are you micromanaging? If you’ve done your homework and found a nanny you can trust, then trust her. It’s not fun being under a critical eye. A  good parent draws forth the qualities they envision for their child. Likewise, your faith in your nanny, knowing she’ll do well, creates confidence and a desire to please you even more.

5. Are you adding more duties and hours? Don’t keep adding more chores or hours without additional compensation.

6. Is she bored? Encourage her to get out and go on playdates, trips to the zoo, the park, the Children’s Museum or the Butterfly Wonderland. Being a nanny is isolating. The interaction and stimulation will benefit your child.

7. Is your pay and benefits package competitive? If you’re able, are you giving her raises when you get a raise at your job?
Beth

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May 26, 2014 Blog By admin No Comments

BEING PAID UNDER THE TABLE CAN DELAY RETIREMENT

BEING PAID UNDER THE TABLE CAN DELAY RETIREMENT
When a nanny, housekeeper or senior caregiver is paid legally, they are entitled to certain benefits that are earned through the payroll and tax process. But because many household employees are younger in age, sometimes they don’t realize how important these benefits are. In this edition of The Legal Review, the Hanson family finds themselves in a big mess after their long-time nanny decides she’s ready to stop working.

The Situation

The Hanson family lives in upstate New York and has employed a nanny named Bonnie for the past four years. Unlike most nannies, Bonnie was 60 years old when the Hansons hired her, but had a wealth of experience with childcare as she was a stay-at-home mom for most of her life. Before working for the Hansons, the only job Bonnie ever had was working in a local retail shop for 8 years. With her upbeat personality and her love for children, she was a great fit for the Hansons after their first child was born and they were ecstatic to hear she would take on the challenge of a second child two years later.

The Mistake

When the Hansons first hired Bonnie, they asked their neighbors how they handled hiring a nanny for their kids. The Hanson’s neighbors explained they paid their nanny like they would a babysitter and gave her cash at the end of each week. Bonnie agreed with this arrangement and she was paid in cash every Friday for four years.

The Law

When a family hires a household employee to work in their home, they are required to withhold Social Security & Medicare (FICA) taxes from their employee’s pay each payperiod. Federal and state income taxes – while not explicitly required to be withheld – should be deducted as well to ensure the employee does not get stuck with a large tax bill during tax season. The family is also required to pay a matching portion of FICA taxes, as well as federal and state unemployment insurance taxes. Some states, like New York, also require additional taxes to either be withheld from an employee or paid by an employer. Please visit our state-specific pages for details on the taxes in your state.At the end of the year, the family is required to prepare a W-2 for their employee so they can file their personal income tax return. The family is also required to file Form W-2 Copy A and Form W-3 with the Social Security Administration and prepare a Schedule H to attach to their personal income tax return.

The Mess

After four years of working for the Hansons, Bonnie was 64 and nearing the age for retirement. In trying to prepare for this exciting time, she enlisted the help of a local CPA to gauge what her benefits would be so she could budget for the next chapter of her life. Unfortunately, when the CPA learned Bonnie had no employment records for the previous four years, he had to be the bearer of bad news and told her she was ineligible for Social Security benefits. This is because the Social Security Administration (SSA) requires a minimum of 40 credits (or 10 years of work) to be accrued before a person can earn retirement benefits – and Bonnie could only prove she had eight years in retail.

Bonnie was confused and asked the CPA how she could get credit for the last four years of her working career so she could retire at the end of the year. The CPA explained that the Hanson family would need to catch up on four years’ worth of payroll reporting and tax returns in order for the SSA to approve Social Security benefits for her. With this information in hand, Bonnie approached the Hansons, who were understandably embarrassed and guilt-ridden at the thought of their long-time nanny not being able to retire on her schedule.

The Outcome

The Hansons wanted to help Bonnie in any way they could. After four years working in their home, she was a valued member of their household and a grandmotherly figure to their children. The CPA Bonnie consulted with happened to have a couple of clients with household employees and told the Hansons to contact Breedlove & Associates about the late tax returns. While he knew the steps they needed to take to make everything right for them and Bonnie, he wasn’t interested in taking on four years’ worth of payroll and taxes.

The Hansons called Breedlove & Associates the next day and we were able to get them caught up on their employer taxes. We set them up as household employers with the IRS and the state of New York, gathered the four years’ worth of payroll information for Bonnie, filed the late tax returns, and best of all, sent tax information for the family and Bonnie to the Social Security Administration so Bonnie could get the working credits she needed for retirement. The family unfortunately incurred thousands of dollars in back tax payments and interest, but we were able to get the state of New York to waive the majority of the penalties they assessed. Bonnie will turn 65 in November and she’s now set up to retire just in time for the holiday season.

 How the Whole Thing Could Have Been Avoided

If the Hansons had verified what their neighbor said via an accountant or even a simple Google search, they would have realized paying Bonnie in cash was not the right course of action. When families become household employers for the first time, they often have a laundry list of questions. It’s important that they are steered toward a resource that can set them up for success. We’re always available for your clients when they need this initial consultation and it’s free for them to call. Sometimes a ten minute conversation can save a family like the Hansons thousands of dollars.
Thank you to our partners at Breedlove for this guest blog. Here at Caring Nannies, we have a story of our own about nannies ready to retire after a 40 year career, with no Social Security benefits and with poor health. Obama has made it a wash for families who deduct taxes. Check it out with Breedlove and you’ll be surprised how inexpensive it is to do it right. You’ll sleep better at night and if your nanny needs to purchase a new car or a home, she can do it because she has a valid job.

Built by household employers exclusively for household employers, Breedlove & Associates provides a no-work, no-worry solution to paydays, tax time and all points in between.  If you have any questions about household employment or want to take advantage of our complimentary New Employer Orientation, just give us a call.   We’re here to help.

Beth Weise

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