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Taking your nanny on vacation can add a lot to your trip if you plan well and communicate expectations. It’s not a vacation for her. It’s a business trip. If she were on vacation, she’d be with her friends and family. Pay her the regular hourly rate she receives at home, and if she’s working more hours than normal, include a bonus. Expect to pay all her travel expenses, including airfare, lodging and a meal stipend, just as you receive that from your employer when you to travel for them.

Give her some free time and give her extra money to go exploring on her own, just as your employer adds perks to your business trips. Give he a day off after a long day of travel to scope out the vacation spot and relax before she starts sitting… a day apart will be refreshing for everyone. Taking care of children is a lot of work. Plan ahead what hours she’ll be on deck, and when she’s free. Make a calendar and the hours she’s needed.

A private room for her is essential. This will enable you to be alone with your family as well. Don’t expect her to bunk up with the kids. She needs all her energy and mental availability for the daytime schedule. Having a nanny allows you to have some adult time and do some spur of the moment activities and to spend special one on one time with each child separately, maybe go water-skiing with an older child and leave her with the younger  ones.

Don’t ask her for more hours than usual, unless you arrange for that and pay accordingly. Don’t pay $50 extra and expect 24/7 availability. Pay her from the moment she arrives at your home until you reach your destination and the kids are settled.

If she enjoys herself on vacation, that’s a benefit to the whole family. It strengthens the relationships and makes her feel good about her job. You may not want to take a brand new nanny traveling, because the adjustments can be overwhelming. You don’t want to damage the relationship you have with your nanny.

It is expensive to bring your nanny with you on vacation but it can be well worth it. It gives you the best of both worlds–family time during the day, and some adult time in the evening! It can be nerve-racking to hire a stranger in a new city, and with all the changes your kids are going through, new surroundings, new activities, it’s comforting to have that familiar face at nap and bedtime. The more you plan ahead and communicate expectations, the more enjoyable the experience will be.

Beth Weise

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BEING PAID UNDER THE TABLE CAN DELAY RETIREMENT
When a nanny, housekeeper or senior caregiver is paid legally, they are entitled to certain benefits that are earned through the payroll and tax process. But because many household employees are younger in age, sometimes they don’t realize how important these benefits are. In this edition of The Legal Review, the Hanson family finds themselves in a big mess after their long-time nanny decides she’s ready to stop working.

The Situation

The Hanson family lives in upstate New York and has employed a nanny named Bonnie for the past four years. Unlike most nannies, Bonnie was 60 years old when the Hansons hired her, but had a wealth of experience with childcare as she was a stay-at-home mom for most of her life. Before working for the Hansons, the only job Bonnie ever had was working in a local retail shop for 8 years. With her upbeat personality and her love for children, she was a great fit for the Hansons after their first child was born and they were ecstatic to hear she would take on the challenge of a second child two years later.

The Mistake

When the Hansons first hired Bonnie, they asked their neighbors how they handled hiring a nanny for their kids. The Hanson’s neighbors explained they paid their nanny like they would a babysitter and gave her cash at the end of each week. Bonnie agreed with this arrangement and she was paid in cash every Friday for four years.

The Law

When a family hires a household employee to work in their home, they are required to withhold Social Security & Medicare (FICA) taxes from their employee’s pay each payperiod. Federal and state income taxes – while not explicitly required to be withheld – should be deducted as well to ensure the employee does not get stuck with a large tax bill during tax season. The family is also required to pay a matching portion of FICA taxes, as well as federal and state unemployment insurance taxes. Some states, like New York, also require additional taxes to either be withheld from an employee or paid by an employer. Please visit our state-specific pages for details on the taxes in your state.At the end of the year, the family is required to prepare a W-2 for their employee so they can file their personal income tax return. The family is also required to file Form W-2 Copy A and Form W-3 with the Social Security Administration and prepare a Schedule H to attach to their personal income tax return.

The Mess

After four years of working for the Hansons, Bonnie was 64 and nearing the age for retirement. In trying to prepare for this exciting time, she enlisted the help of a local CPA to gauge what her benefits would be so she could budget for the next chapter of her life. Unfortunately, when the CPA learned Bonnie had no employment records for the previous four years, he had to be the bearer of bad news and told her she was ineligible for Social Security benefits. This is because the Social Security Administration (SSA) requires a minimum of 40 credits (or 10 years of work) to be accrued before a person can earn retirement benefits – and Bonnie could only prove she had eight years in retail.

Bonnie was confused and asked the CPA how she could get credit for the last four years of her working career so she could retire at the end of the year. The CPA explained that the Hanson family would need to catch up on four years’ worth of payroll reporting and tax returns in order for the SSA to approve Social Security benefits for her. With this information in hand, Bonnie approached the Hansons, who were understandably embarrassed and guilt-ridden at the thought of their long-time nanny not being able to retire on her schedule.

The Outcome

The Hansons wanted to help Bonnie in any way they could. After four years working in their home, she was a valued member of their household and a grandmotherly figure to their children. The CPA Bonnie consulted with happened to have a couple of clients with household employees and told the Hansons to contact Breedlove & Associates about the late tax returns. While he knew the steps they needed to take to make everything right for them and Bonnie, he wasn’t interested in taking on four years’ worth of payroll and taxes.

The Hansons called Breedlove & Associates the next day and we were able to get them caught up on their employer taxes. We set them up as household employers with the IRS and the state of New York, gathered the four years’ worth of payroll information for Bonnie, filed the late tax returns, and best of all, sent tax information for the family and Bonnie to the Social Security Administration so Bonnie could get the working credits she needed for retirement. The family unfortunately incurred thousands of dollars in back tax payments and interest, but we were able to get the state of New York to waive the majority of the penalties they assessed. Bonnie will turn 65 in November and she’s now set up to retire just in time for the holiday season.

 How the Whole Thing Could Have Been Avoided

If the Hansons had verified what their neighbor said via an accountant or even a simple Google search, they would have realized paying Bonnie in cash was not the right course of action. When families become household employers for the first time, they often have a laundry list of questions. It’s important that they are steered toward a resource that can set them up for success. We’re always available for your clients when they need this initial consultation and it’s free for them to call. Sometimes a ten minute conversation can save a family like the Hansons thousands of dollars.
Thank you to our partners at Breedlove for this guest blog. Here at Caring Nannies, we have a story of our own about nannies ready to retire after a 40 year career, with no Social Security benefits and with poor health. Obama has made it a wash for families who deduct taxes. Check it out with Breedlove and you’ll be surprised how inexpensive it is to do it right. You’ll sleep better at night and if your nanny needs to purchase a new car or a home, she can do it because she has a valid job.

Built by household employers exclusively for household employers, Breedlove & Associates provides a no-work, no-worry solution to paydays, tax time and all points in between.  If you have any questions about household employment or want to take advantage of our complimentary New Employer Orientation, just give us a call.   We’re here to help.

Beth Weise

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What is the difference between a Nanny and a Babysitter? The easiest way to tell the difference between a nanny and a babysitter is to give some examples. If two children are fighting over a riding toy, a babysitter will simply swoop it up and distract the children with another activity.

But a Nanny will see this as a learning opportunity and will as questions, like: “What did you do?” or “What was wrong with that?” or “What would have been a better way to handle that situation?” or “Can you tell your brother you’re sorry and ask him to forgive you?” to get the children thinking about their behavior and how they could have done things differently. She is thinking about the whole child, their character, manners, and values.

A Nanny comes in with a plan. She’s thinking about small muscle, large muscle development, social, emotional, cognitive, and language development. She’s thinking about the age the child is now and what to expect three months out, and how to accelerate development through art and crafts, books, asking questions, outdoor activities, finger plays, music, books and field trips. Her main priority is the child’s character, especially to develop qualities like creativity, attentiveness, kindness, honesty, courage, self-discipline resilience and a joy in living, all foundational to success.

A Nanny uses the entire day as a learning opportunity. If a two year old discovers an earthworm under some new sod, the Nanny may start a worm farm in a quart jar, get a library book about worms, do art projects about worms and do music and movement and talk about how important worms are to us. (There would be no food on the earth without the hard work worms do for us!)

If a toddler is eating blueberries, she may ask him to count them, and count agin when one is eaten. If he can cut a banana slice in half, she’ll be talking about halves and quarters.

A Nanny has years of professional experience and possibly an educational background and sees herself as a teacher. She usually becomes a part of the family and is considered almost a third parent. She may have more experience than the parents and can give parents insights about ages and stages. She may spend more time with the child than the parents and keeps a log or reports about the child’s day. She works full or part time, but has a regular salary or hourly pay, and gets paid 52 weeks per year. She usually gets paid holidays and vacations and has a written working agreement with her family. This is a career for her.

babysitter usually comes when needed, is on call, and keeps the child safe, fed and puts them to bed. She is paid hourly.

If you are mostly an at-home parent and only work 10-15 hour per week, a babysitter may be a good option for your household. But if parents are both in demanding full-time positions, a nanny can be an essential element of your child-rearing strategy.

One more difference. A Nanny oftentimes has down time during naps or when a child is in preschool. She may throw in a load of laundry or get dinner started. She will often grocery shop or pick up a gift for the weekend birthday party. This way, the family has more quality time to capture those fleeting cherished relationships.

Beth Weise

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MOTHER NEEDED! JOB DESCRIPTION: Long term, team players needed, for challenging permanent work in an often-chaotic environment. Candidates must possess excellent communication and organizational skills and be willing to work variable hours, which will include evenings and weekends and frequent 24 hour shifts on call.

RESPONSIBILITIES:

The rest of your life. Must be willing to be hated, at least temporarily, until someone needs $5. Must be willing to bite tongue repeatedly. Also, must possess the physical stamina of a pack mule and be able to go from zero to 60 mph in three seconds flat in case, this time, the screams from the backyard are not someone just crying wolf.

Must be willing to face stimulating technical challenges, such as small gadget repair, mysteriously sluggish toilets and stuck zippers. Must screen phone calls,  maintain calendars and coordinate production of multiple homework projects. Must have ability to plan and organize social gatherings for clients of all ages and mental outlooks. Must be willing to be indispensable one minute, an embarrassment the next. Must handle assembly and product safety testing of a half million cheap, plastic toys, and battery operated devices. Must always hope for the best but be prepared for the worst. Must assume final, complete accountability for the quality of the end product.

Responsibilities also include floor maintenance and janitorial work throughout the facility.

POSSIBILITY FOR ADVANCEMENT & PROMOTION:

Virtually none. Your job is to remain in the same position for years, without complaining, constantly retraining and updating your skills, so that those in your charge can ultimately surpass you.

PREVIOUS EXPERIENCE:

None required unfortunately. On-the-job training offered on a continually exhausting basis.

WAGES AND COMPENSATION:

Get this! You pay them! Offering frequent raises and bonuses. A balloon payment is due when they turn 18 because of the assumption that college will help them become financially independent. When you die, you give them whatever is left. The oddest thing about this reverse-salary scheme is that you actually enjoy it and this wish you could only do more.

BENEFITS:

While no health or dental insurance, no pension, no tuition reimbursement, no paid holidays and no stock options are offered; this job supplies limitless opportunities for personal growth and free hugs for life if you play your cards right.

HAPPY MOTHER’S DAY, MOM! Thanks for responding to the “AD!”
And thanks to my brother James who wrote this blog and is the one on Mom’s lap in the photo. He’s the pastor of Living Christ Fellowship in Chandler, and on the Board of Home on the Way in Phoenix.

  James

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When you have a child, you start thinking about what you want to leave them. Naturally, we think of a college education, money or a home. But far more important, is the legacy of values you give them. My friend Marjorie Desmond, a Phoenix estate planning attorney, suggests writing a legacy letter for your children. Since we don’t know what will happen tomorrow, she recommends parents write a letter for a child or grandchild’s home-leaving, graduation, a special birthday, wedding, birth of their first child or your own funeral. Marjorie’s mom, now deceased, wrote her a poem when she left home, and now with her daughter getting ready to leave for college, she was able to share this poem with her.

Write a legacy letter. Think of everything you’d want to tell your spouse and children if you knew you had two weeks to live, and put it all in a letter to them. Tell your daughter, or granddaughter what you felt when she was born. The kind of man you want her to marry and why. You express to your spouse how happy they’ve made you and your desire for them to be free to be happy when you’re gone.

Share the meaning of your life, beliefs and the lessons life has taught you. This can be done in a letter, an audio recording, or a video. You can make a scrapbook with photos and written stories. You can say at your son’s graduation, “Scott, my heart overflowed with joy at the realization of how all your hard work is now paying off. I am so proud of you!” This part of the letter is a way of telling your unique story, including your accomplishments, how you’ve tried to live your life and what your family will take from you. You can encourage your children to make wise choices.

Include your family history. “My Grandpa was born in Oklahoma territory and we know very little about his family history,” lamented Marjorie. “We see 69% of people die without any estate planning at all. The most important part of a legacy is the values, words of wisdom and life lessons you carry with you. You don’t want your family to learn the hard way.”

Marjorie has a passion to help other families because of her own legacy. Her Grandpa, a Slovenian immigrant, served in the Army Air Corps during WWII as a medical doctor. In early 1945, his plane crashed and he died. At the age of seven, Marjorie’s Dad was told, “You’re the man of the house now,”and he helped raise his younger brother. Because an uncle received the death benefits, Marjorie’s grandmother had to live frugally. She went back to school and become a teacher.  Marjorie’s dad was also a medical doctor who was drafted to serve in Vietnam.  Thankfully, he returned safely, but life is often uncertain.  Don’t miss an opportunity to share your values with your family. This is why Marjorie is passionate about helping other families plan their legacy. From the age of eight, she knew she wanted to be a lawyer.  She has a passion for making sure we pass on what we want to, to whom we want, when we want, and these things we pass on start with our values.

“No one is getting out alive,” Marjorie reminded me. “Don’t you want to leave your child a love letter?”

If parents take the time to write these legacy letters, they’ll be much more likely to express gratitude and joy on a daily basis to their loved ones.

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