If you are considering hiring household help, chances are, you are thinking about the many details involved with the decision. Opening your home and entrusting the care of your loved ones to a new person is a big step. Be mindful, and take time to do your research. Here are some essential things to keep in mind before onboarding a new household employee.
#1: Remember to establish the employee and employer relationship right away.
Whether it’s a nanny, a senior caregiver, or a cook, your household employee is your employee. As an employer, you should establish this professional working relationship from the start. One key way to do this is by outlining a written work agreement. This document sets the tone for clear communication, as it spells out the terms of the employment arrangement for both parties. Points to include are duties and responsibilities, tax obligations, benefits and compensation details , transportation, severance, termination, and any other important information on confidentiality. It’s crucial to put everything in writing, so there is no confusion later down the road.
#2: Get a background check done, and check references.
A key component to the hiring process, no matter what type of employee you’re looking to hire for your home. A caregiver background check will look at the potential employee’s history and show you items you would not otherwise know, including criminal history. In addition to background checking your potential employee, make sure you also thoroughly check their references. References often provide insight into a candidate’s character, strengths, and weaknesses.
#3: Understand employee worker’s compensation insurance details.
Many states require household employers to have worker’s compensation insurance for their employees. Homeowner’s insurance doesn’t always include this type of liability coverage. Worker’s compensation insurance protects the caregiver, and you as the employer, from liabilities or expenses in the event of a work-related accident. If you don’t carry this insurance, one accident could make you personally liable and could put you out thousands of dollars in medical bills for your injured employee. Talk to your insurance broker about getting your employee’s worker’s compensation insurance set up. You will need an employer tax ID number to secure this coverage, so paying on the books is critical.
#4: Familiarize yourself with household employment laws.
Each state outlines regulations required when employing a household employee—such as tax compliance, wage and hours laws, or payroll tax requirements. We know your time is valuable, and deciphering the multitude of rules can be overwhelming. Our team at HomeWork Solutions has developed state-specific tip sheets to help you understand what actions you need to take and what you’re required to pay.
#5: Get the proper forms.
When you hire a household employee, you become an employer and need to take appropriate measures to get all the forms filled out to comply with federal and state tax laws. Documents could include a W4 form, I-9 form, and other information. There may be additional requirements for your location, such as state tax forms to be filled out. Check out our article on new hire reporting requirements, as they vary by state. Our team at HomeWork Solutions can help answer your questions, and go over your
obligations with you before your employee starts. For more details, call us for a free consultation at 800-626-4829 or check out www.homeworksolutions.com.