As we discussed in Part 1 of this series, being paid legally and knowing the basics of the tax law, are an important part of being treated as a professional. In this section we are going to show you some real world examples of why being paid professionally pays off! Read more »
As a childcare professional, you have one of the most important and noble jobs in the world – to nurture, protect, educate, guide and inspire children. You should view yourself – and demand to be treated – as a professional. In part, this means making sure that your compensation is handled accurately, fairly and legally. Read more »
The nanny/household employee industry has been historically notorious for misclassifying their employees (i.e. paying them off the books). The IRS is giving families a chance to come clean and fix the problem by June 30, 2013. Experts estimate that the tax shortfall for families not reporting/paying is $3-$10 billion per YEAR! The IRS have been cracking down on the household employee industry in recent years, and many believe this is a warning that they will be targeting it even more.
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THE FLEXIBLE SPENDING ACCOUNT WINDOW
A couple gave birth to a baby boy on July 3, 2011. In mid-July, they began searching for a nanny so the mom could go back to work after Labor Day. With about 2 weeks to spare, they found the perfect nanny.
When the mom went back to work, she learned that they had missed out on a major tax break. Read more »
Unreported Temporary Care: An Honest Mistake
With nanny taxes embarrassing politicians left and right these days, many American families want to know what they can do to avoid a similar fate. This edition of The Legal Review will discuss a common error made by families when hiring temporary care. Read more »