Our partners at HomeWork Solutions are the experts in managing household employer taxes and filings. They can help you understand your specific state employer requirements, answer questions about workers' comp insurance, and provide individualized guidance at no additional cost to you and your family.
What are the benefits?
HWS manages employer and employee payroll taxes for families, which include:
- FICA: Social Security (6.2% of wages) Medicare (1.45% of wages)
- SUTA/FUTA: State/Federal Unemployment Taxes, varies per state (2-3% of wages)
- Providing your caregiver with a W-2 at the end of the year (if needed)
As a direct household employer, IRS requires families to withhold a caregiver's portion of these taxes from their total wage. Enrolling in HWS automatically calculates all employment taxes on each invoice and files it to the federal or state authorities through CareLinx. The dedicated team at HomeWork Solutions will manage quarterly and annual tax filings and payments and serve as a trusted resource for you and your caregiver. Here's an example of how an invoice looks like if enrolled in HWS.
Aside from being able to manage your tax obligations, HWS will be a direct resource for you and your caregiver regarding tax documents, state insurance requirements, and much more! If you pay your caregiver illegally, you’ll miss out on potential tax breaks and your caregiver will lose their much deserved benefits for their own retirement.
Do I have any other options?
Yes, but please note that if you do not opt to enroll in HWS, the IRS will audit you for the unpaid payroll taxes entitled to yourself and your caregiver, which you can expect to end up paying for at the end of the year. Families that choose to avoid paying taxes for employing a caregiver privately in order to keep cost low, actually get caught by the IRS more often than not.
In some occasions, our families have their own payroll tax management service so they normally do not enroll. You may also seek advice from a CPA, or self manage your taxes on your own, which can be very complicated.
How do I enroll in HWS?
You will be asked to setup your tax management during the hiring process of your desired caregiver. For more details, please take a look the article below.
What do I do if I want to unenroll in HWS?
Again, HWS is an option for you. If you have decided to unenroll, you have the freedom to remove yourself from this partnership. You can contact HWS with the number provided below, or view your HWS portal.
What if I have more questions?
Feel free to contact our Support Team at (800)-494-3106 or you may contact HWS directly at (800)-626-4829.