IRS Interpretation of HIRE Act Excludes Household Employers

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.

     Obviously, given the purpose of the law and the broad definition of employer, we are dismayed and frustrated by the ruling as it would have greatly benefitted the industry by making care affordable to more families. We have appealed to the original sponsor of the bill and the IRS to re-consider the household segment since the latest INA survey reflected an unemployment rate of more than 13 percent - far worse than the national average.
     We'll keep you posted and let you know immediately if Congress or the IRS reverses course to include household employers. Until then, however, please let your families know that - as it stands today - they will not be able to take advantage of this tax break.
     If you have any questions, please let us know at 888-BREEDLOVE (273-3356) or info@breedlove-online.com.