IRS Interpretation of HIRE Act Excludes Household Employers
From Breedlove and Associates
When the HIRE Act was signed into legislation on March 18, 2010, we immediately immersed ourselves in the lengthy statute - as we do with all legislation that might affect your agency, your families or your candidates. Despite nebulous language in many places, the bill is extremely clear on two points: 1) its purpose is to incentivize employers to create jobs for unemployed Americans; 2) the definition of "employers" is explicitly and intentionally broad - in fact, the bill specifically states that the only type of employer not included is government entities.
After spending the last two weeks sorting through all the details and logistics on behalf of families and nannies, we have now learned that the IRS's formal interpretation of the law excludes household employers.
Wednesday, March 31, 2010
Tuesday, March 23, 2010
HIRE Act Signed Into Law
From Breedlove & Associates - Email Update
Good News for Many of Your Families and Nannies!
President Obama has signed into law a new job creation act entitled Hiring Incentives to Restore Employment (HIRE Act). The HIRE Act will reduce the cost for your families who hire a qualified worker(s) after February 3, 2010 (a qualified worker is defined as anyone who has worked 40 hours or less in the 60 days preceding employment).
Those families who hire a qualified worker(s) will be entitled to an exemption on the employer portion of the Social Security tax. The 6.2% exemption applies to all wages paid in 2010 between the dates of March 19 and December 31.
Note: Employers will still be required to pay Medicare (1.45%) as well as Unemployment and any other applicable state taxes, but the HIRE Act will reduce the employer's payroll tax obligation by more than 60%.
Logistically, families will need to get their new employee to sign an affidavit stating that he/she has been unemployed or underemployed per the HIRE Act qualifications. Families will then be required to report the New Hire and deduct the Employer Social Security Tax from their estimated federal payments throughout the rest of the year.
If you have any questions about the new law, please contact us. In the meantime, we'll be updating our Payroll Calculator at www.breedlove-online.com in the coming days. As always, we also stand ready to provide families with a complimentary, no-obligation consultation to discuss this and other tax, legal and budgeting issues that may affect them.
Good News for Many of Your Families and Nannies!
President Obama has signed into law a new job creation act entitled Hiring Incentives to Restore Employment (HIRE Act). The HIRE Act will reduce the cost for your families who hire a qualified worker(s) after February 3, 2010 (a qualified worker is defined as anyone who has worked 40 hours or less in the 60 days preceding employment).
Those families who hire a qualified worker(s) will be entitled to an exemption on the employer portion of the Social Security tax. The 6.2% exemption applies to all wages paid in 2010 between the dates of March 19 and December 31.
Note: Employers will still be required to pay Medicare (1.45%) as well as Unemployment and any other applicable state taxes, but the HIRE Act will reduce the employer's payroll tax obligation by more than 60%.
Logistically, families will need to get their new employee to sign an affidavit stating that he/she has been unemployed or underemployed per the HIRE Act qualifications. Families will then be required to report the New Hire and deduct the Employer Social Security Tax from their estimated federal payments throughout the rest of the year.
If you have any questions about the new law, please contact us. In the meantime, we'll be updating our Payroll Calculator at www.breedlove-online.com in the coming days. As always, we also stand ready to provide families with a complimentary, no-obligation consultation to discuss this and other tax, legal and budgeting issues that may affect them.
Thursday, March 18, 2010
Daily Log Tips
As a nanny, I enjoyed keeping a daily log and found it helpful in communicating with the parents about the children's day. The family I work for also used the log book to record information about the children so that I had a sense of how their evening or weekend went. When the children started school full time we gradually got away from journaling about their days. Now we look back at those log books to enjoy the tender moments, the fun times and the warm memories.
Here are some tips that could help you establish the daily log routine.
Friday, March 12, 2010
Sock Bunnies
Check out this great website to get directions on this fun activity - http://www.creativenanny.blogspot.com/. You'll find other great craft and activity ideas there as well. ENJOY!!
Monday, March 8, 2010
Remembering Dr. Seuss
Last Tuesday would have been Theodore Seuss Geisel's 106th birthday. Dr. Seuss has always been a favorite for me personally, but also for the children I've cared for. What is it about his books that are so compelling? Maybe it’s the rhyme and the rhythm or the energetic artwork, or maybe the flow of fun that is woven into every story. No matter what the reason they have stood the test of time and continue to delight and fascinate children and adults alike.
Our favorites include:
One Fish, Two Fish – a great first reader book with a wonderful sing-song rhythm
Hop on Pop – another wonderful beginner reader, which is often a favorite of preschoolers
Green Eggs and Ham or The Cat in the Hat – crazy fun, encouraging reading
The Lorax and The Sneetches – for life lessons that still speak to us
There are so many more wonderful titles and great stories. We’d love for you to share something about your favorite Dr. Seuss books! Please comment below. We’re looking forward to hearing from you.
Thursday, March 4, 2010
Head to a Museum!
by Kelly Miller
Are you looking for a fun, inexpensive outing with the children? Check out the Museum Adventure Pass program at the melsa metro public libraries (www.melsa.org/museumadventurepass/). Each week, the boys I nanny for look at the brochure and pick a museum to visit. Obtaining a pass at the library usually is not difficult, and one pass lets two people in free! (the Minnesota Zoo is harder to get .... be there right when the library opens!). We have visited the Minneapolis Institute of Arts, the Bakken Museum, and today, we are heading for the Works. Have fun exploring!
Are you looking for a fun, inexpensive outing with the children? Check out the Museum Adventure Pass program at the melsa metro public libraries (www.melsa.org/museumadventurepass/). Each week, the boys I nanny for look at the brochure and pick a museum to visit. Obtaining a pass at the library usually is not difficult, and one pass lets two people in free! (the Minnesota Zoo is harder to get .... be there right when the library opens!). We have visited the Minneapolis Institute of Arts, the Bakken Museum, and today, we are heading for the Works. Have fun exploring!
Gardening With Kids
The melting snow has us all thinking about spring. If you want to garden this year, it's not too soon to begin planning. A garden is a wonderful place for children to explore science, art, creativity, and the concept of life--not to mention that gardening can be great exercise. KidsGardening has a fantastic guide about gardening with children of all ages.
Monday, March 1, 2010
Tips for a Great Interview
By Colleen O’Connor
With the job market as competitive as it is, acing an interview is more important than ever. At Nannies from the Heartland we provide our nannies with an interview guide to help them do just that. Here’s a bit of our best advice.
With the job market as competitive as it is, acing an interview is more important than ever. At Nannies from the Heartland we provide our nannies with an interview guide to help them do just that. Here’s a bit of our best advice.
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