The “Nanny Tax” Could be a problem for Home Care Clients

Stephen Tweed | February 5, 2009 | Newsroom
By Stephen TweedThis week we saw three of President Obama's potential appointees get into difficulty over not paying taxes. While Timothy Geitner survived the scandal and became Secretary of the Treasury, Tom Daschle and Nancy Killefer were not as fortunate and they withdrew their names form nomination.The case of Ms Killefer is relevant to us…

By Stephen Tweed

This week we saw three of President Obama’s potential appointees get into difficulty over not paying taxes. While Timothy Geitner survived the scandal and became Secretary of the Treasury, Tom Daschle and Nancy Killefer were not as fortunate and they withdrew their names form nomination.

The case of Ms Killefer is relevant to us in Private Duty Home Care as it relates to potential clients or families who may consider hiring a caregiver directly, or using a registry that does not withhold taxes. Her problem with unemployment taxes for household help suggests the need for a couple of reminders. If you have a babysitter or home care aide or housekeeper, you’re probably responsible for more than just their Social Security and Medicare taxes. There may also be payments related to unemployment or workers’ compensation coverage.

Here’s a link to an article in the New York Times about “Doing The Right Thing by Paying The Nanny Tax.” This information may be helpful to you when discussing the issue of independent caregivers or caregiver registries.

What do you think about this issue? Give us your comments.

Stephen Tweed
Stephen Tweed, CSP, began his journey as a business strategist in home health care in 1982. Today, Stephen is among the top thought leaders in Home Care strategy and management. He has worked with top 5% companies from across the US. He is a sought after speaker at from national and state association events.

Related Posts

Extraordinary Transformation: A blueprint for leaders who want to Transform their Organization

June 5, 2024
By Stephen Tweed As a leader in Home Care, are you working on transforming your organization? Are you looking for strategies and insights to grow your business and get ready for the future? I've just finished reading an amazing book by my friend and professional speaking colleague, Dr. Nido Qubein. "Extraordinary Transformation: An Entrepreneurial Blueprint…

Stephen Tweed’s Podcast and Webinar Appearances

May 30, 2024
As a significant Thought Leader in the Home Care industry, Stephen Tweed is frequently invited to be a guest on industry podcasts and webinars. Here are links to some of Stephen's recent appearances. May 2024 - "The Power of Peer Groups: How Home Care CEOs Propel the Industry's Growth" Stephen was interviewed by Ruby Mehta,…

The Forces and Trends Shaping the Future of Home Care.

May 14, 2024
By Stephen Tweed What will the Home Care Industry look like in five years? Over the past two decades I've been actively engaged in the Home Care Industry, and monitoring the Forces and Trends that are shaping the future of our industry. While much of the growth of Home Care is driven my the entrepreneurial…