Paying your nanny on paper is best for everyone involved. Not only can it benefit your nanny, but you can save money by paying legally.
How Are Things Different This Year With the Coronavirus?
The two COVID-19 acts, Families First Act and CARES Act, offer several benefits to both families and caregivers who may be affected by the coronavirus. By paying your nanny legally, you both can access the following:
- Paid sick leave and paid family leave for nannies
- Tax credits for families that provide paid leave for their nanny
- Expanded unemployment benefits for nannies that lose their job
Is There a Tax Credit for the Family First Act?
Yes, employers not exempt from this law will be entitled to a tax credit equal to the sick leave and/or expanded FMLA wages paid to your employee while they are out of work. The credit is refundable to families, which means if you paid more money for sick time and/or expanded FMLA benefits than you owed in Social Security and Medicare taxes, you would be refunded the difference. Remember, you only qualify for the tax breaks if you are paying your nanny legally.
How Can Care.com HomePay Help?
Care.com HomePay can get your nanny on the books and provide the proof you need to qualify. For example, they generate nanny pay stubs, which serve as proof that you’ve been paying your nanny legally. So there’s no need to frantically rummage through your files when it comes time to claim your tax break money.
HomePay regularly works with families that want to catch up on their taxes and pay their nanny legally. HomePay will quickly and efficiently file all outstanding household employment tax returns on your behalf and manage any notices from the state or the IRS that you may receive. And because the IRS extended the tax filing deadline to July 15th, you still have time to let HomePay do all this work for you. HomePay will ensure no mistakes are made and that you and your caregiver receive the tax credits and benefits you both deserve. It’s a win-win!
Call 877-367-1976 or visit our Care.com HomePay’s website to get started today!