Here, she shares her best Black Friday money-saving (and pretty funny!) tips.
Halloween is a huge holiday and it’s only getting bigger. Today, Americans spend billions (yes, billions!) of dollars on Halloween, but decades ago it was a little different. We are reminiscing about this spooky holiday—and we hope you’ll share your own memories.
Check out Julie’s story about her past Halloweens!
Do you remember your first Halloween? What was your favorite part?
We know that taxes can be complicated. When you hire a caregiver, you also need to deal with the paperwork, the rules, new laws…eek! To help families feel more comfortable and confident moving forward, we’ve created the following easy FAQ for household employers on the Affordable Care Act:
Last October, the first stages of the Affordable Care Act went live. And again this year, October will be the time when Americans looking for health insurance can access the online health insurance exchange where they can compare policies and ultimately purchase a plan that suits their individual needs. Because this is still a relatively new change to the way health insurance is administered, many families are confused or concerned about how the changes will impact them as a household employer.
What is the Affordable Care Act?
The Patient Protection and Affordable Care Act, commonly referred to as the Affordable Care Act, is a federal statute which was signed into law in 2010. The statute is primarily aimed at reducing the overall cost of health care and decreasing the number of uninsured individuals living in the United States by enacting a number of different mandates, subsidies and tax credits.
Am I required to offer health insurance to my employee(s)?
No, employers are not required to offer health insurance if they employ fewer than 50 employees. However, you are required to provide your current employee(s) and, at the time of hire, any future employee(s) with notice of the new Health Insurance Marketplace.
Is my employee required to have health insurance?
Yes, your employee may be charged penalties if she does not have health insurance coverage. However, you are not responsible for making sure your employee has health insurance.
What is the Health Insurance Marketplace?
The Health Insurance Marketplace, or The Marketplace, is a “one-stop shop” where individuals can compare and purchase health insurance policies. Open enrollment for The Marketplace begins on October 1, 2014 for coverage beginning January 1, 2015. Your employee(s) will be able to purchase health insurance through The Marketplace until open enrollment ends on February 15, 2015. For more information on The Marketplace, or to complete an online application for health insurance coverage, please visit www.HealthCare.gov.
How much will health insurance cost?
The cost of health insurance will vary depending on your state and the amount of coverage your employee chooses. After completing an application through The Marketplace, your employee will be able to compare prices and coverage options for different health insurance policies. Depending on your employee’s income and family size, she may be eligible for the Advance Premium Tax Credit if she purchases insurance through The Marketplace. The credit can be applied directly to her monthly premiums which results in immediate cost savings. If she qualifies for the Advance Premium Tax Credit, her savings will be reflected in the prices displayed on The Marketplace.
If I contribute to my employee’s health insurance policy, will I be eligible for any tax breaks?
If you set up a health insurance policy for your employee through SHOP (Small Business Health Options Program) on the Marketplace and pay at least 50% of your employee’s premiums, you may be able to take advantage of the Credit for Small Employer Health Insurance. This credit is up to 50% of the amount you contribute to your employee’s health insurance premiums. To take this credit, you’ll attach Form 8941 to your personal income tax return. For more information regarding the requirements for contributing to health insurance, please contact HomePay at (888) 273-3356.
Kids might think Halloween is all about the candy, but we know a great costume makes the day. We think costumes shouldn’t add stress and definitely shouldn’t leave you in the Halloween Costume Hall of Shame.
Not too crafty? No need to worry – these are no-fuss, no-muss costumes. We’ve got the easy-to-follow directions and do-it-yourself videos for turning your little ones into everything from spaghetti and meatballs to a snowman…and even Taylor Swift! Your kids will love how they look and you’ll love how easy it is to pull together.
Check out these step-by-step instructions for fun and easy Halloween costumes
Michelle wanted to share her experience of a unique motherhood with the community. She has found that hearing other mothers experiences has been very healing as she continues learning that there is no wrong way to grieve.
Read Michelle’s moving story here.
It may seem like summer just started, but back-to-school season is here and many parents are getting a head start on their nanny hiring process! Our tax experts want to arm you with all the information you’ll need to budget correctly and make the right tax and payroll decisions. Here’s what you need to know…
Are caregivers household employees… or independent contractors?
The first thing to understand is that the IRS considers nannies, senior caregivers, housekeepers, etc. to be employees of the families for whom they work. Some families make the mistake of misclassifying these workers as independent contractors (by providing them with a Form 1099 at the end of the year). This legal error can be very expensive for both parties – the employer is exposed to tax evasion charges and large IRS penalties while the employee has a higher tax rate and fewer benefits. Instead, families should report wages paid to their employee using Schedule H and provide her with Form W-2 at year-end.
Budgeting and tax breaks…
You may be wondering how much to budget for employer taxes. Here’s the good news…thanks to tax breaks, it’s probably much less than you think! The employer taxes fund benefits for the employee (i.e. Social Security, Medicare, Unemployment) and average about 10% of the gross wages.
Did you know that the childcare tax breaks can offset most of that 10% cost – some families even come out ahead! There are several factors that will affect your individual employer budget. Use our free Nanny Tax Calculator for a quick estimate. Most people are pleasantly surprised.
Gross wages vs. Net pay…
Gross wages refers to the amount paid to an employee before her taxes have been withheld. The government requires that all compensation be reported in terms of gross wages. Net pay (a.k.a. “take-home pay”) is the amount the employee gets each payday after taxes have been withheld. When discussing compensation with a prospective employee, we strongly encourage families to use gross wages. If you want to help an employee understand what her net pay will be, feel free to run scenarios with her using our Employee Paycheck Calculator or print out sample paystubs.
Don’t forget to tune into an informational webinar on household payroll and tax obligations on September 11th, at 8:00pm EST and 11:00pm EST. Learn more at myHomePay.com.
- 8:00pm EST registration page: https://www3.gotomeeting.com/register/922270966
- 11:00pm EST registration page: https://www3.gotomeeting.com/register/282093774
If you have questions, please don’t hesitate to give us a quick call at Toll Free 1-888-273-3356. We’re here to help!
Scarlet remembers her teenage babysitting years well. And now that she’s a parent, she’s realized just how much a sitter can offer her family. What does she really want? Someone who has so much fun playing with her kids.
Check out her post to read more.
What do you wish for in a great babysitter? Tell us!