Tuesday, February 27, 2018
Our client, John M. came to us after working with a nanny that he thought could work as an independent contractor.
Background
John M. is a professional athlete that had a career that required he and his wife to find a nanny for their children. John and his wife had 2 kids and they knew a nanny would help alleviate some of the issues they were having with finding reliable childcare, so they he worked with a nanny hiring agency to find the perfect person to work with.
Challenge
John’s Wealth Management Advisor said that the nanny would work as an independent contractor, but the nanny agency disagreed. John’s wealth advisor put him in touch with HomeWork Solutions. John was confused about the difference between employees and independent contractors and when he figured out that he couldn’t pay the nanny as an independent contractor, he realized that he simply didn’t have the time to take care of managing his nanny’s taxes every time he paid her.
Solution
John contacted our team at HomeWork Solutions to get his nanny caught up on payroll taxes and he also signed up for our payroll service, which meant that he wouldn’t have to worry about reading up on all the tax laws and regulations in order to make sure that the taxes were deducted properly. The team at HomeWork Solutions could now take care of everything – deducting the employee’s portion of Medicare and Social Security taxes, etc.
The Result:
John’s family now works with a nanny that has become a close part of their family and since working with HomeWork Solutions, he hasn’t had to worry about anything once tax time rolls around.