GTM Household Help BLOG

~ Summertime Child Care Tax Credit Reminder ~

Day Camp Expenses May Qualify for Tax Credit  

 (An excerpt from IRS.gov)

Are you a parent who’s hired a summer-nanny to care for your children? Or have you taken advantage of the many day-camp options available during the summertime school break?  If so, you'll be relieved to know that you may be entitled to one or more tax breaks!

While temperatures and extra expenses seem to escalate quickly during the summer months, the IRS has some good news for parents:  Those additional child care expenses may help you qualify for a tax credit!

 Here are five facts that you should know about the Child & Dependent Care Tax Credit:

1. The cost of day-camp may count as an expense towards the Child & Dependent Care Tax Credit
2. Keep-in-mind, expenses for overnight camps do not qualify.
3. Whether your childcare provider is a sitter at your home or at a daycare facility doesn’t matter, parents can still get some tax benefit if qualified for the credit.
4. The credit could amount to as much as 35% of qualifying expenses, depending upon your household income.
5. You may use up to $3,000 of the un-reimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information check out IRS Publication 503, Child and Dependent Care Expenses.  This publication is available from the IRS or on GTM.com under Tax Resource Center. 

For specific questions, contact GTM’s Household Tax & Payroll Specialists toll-free at (888) 432-7972 or simply click here to discover your potential Tax Savings using our FREE online tax calculator!   The most accurate tool currently available, including annualized payroll and tax information, GTM’s FREE online tax calculator aids in estimations for Tax Savings which household employers could potentially benefit from, including DCAP and Child & Dependent Care Tax Credit calculations.

Since many qualifications and limitations apply to the various credits, additional information is available at www.IRS.gov.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!  With nearly 20 years of advocacy for the professionalism of the household employment industry, New York-based GTM Payroll Services has been continually guiding and educating thousands of clients throughout the U.S. with services for household employment such as "nannytax", labor compliance, human resources help, workers' compensation and health insurance needs.  Additionally, Guy Maddalone's How To Hire A Nanny: A Household HR® Handbook (Sourcebooks/Sphinx Legal, 2006) has helped set the standard for any family interested in learning how to be a compliant and successful employer.  

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The items included in this blog are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult the experts at GTM or another professional tax adviser for more information and to determine how any item applies to your personal tax scenario.

 

Important Changes To New York State Labor Law Under Wage Theft Prevention Act

On Tuesday, December 14^th, New York Governor, David Paterson, signed into law the Wage Theft Prevention Act.  Paterson was quoted as saying, “At a time when so many New Yorkers are living paycheck to paycheck, it is vital that we protect the right to receive their hard-earned pay and afford them every protection against wage theft.”

In essence, the new Wage Theft Prevention Act, or “The Act”, would institute a series of far-reaching measures which:

• Enact more stringent, transparent record-keeping and employee notification requirements
• Increase the amount of wages that can be recovered as damages for non-payment over and above lost wages – from 25 percent to 100 percent
  • Along with increasing protection for workers who speak up against exploitative employers
  • Create stronger collection, investigation and enforcement tools for State Department of Labor
  • Raise criminal penalties for wage violations; to up to a year in prison and $5,000 fine
  • Strengthen protections for whistleblowers in cases involving wage violations

In more detail, “The Act”, which goes into effect April 9, 2011, makes several changes to New York’s Labor Law, including:

• Amending requirements of employers to provide notices to employees hired on or after October 26, 2009; as well as information on exempt status, pay rates and structure of pay. (Section 195)
  • “The Act” further amended Section 195, adding a new requirement that employers provide all employees with such notices at the time of hire, as well as on or before February 1 of each subsequent year of employment. In addition to information previously required under Section 195, these notices now require new information, such the basis of pay rates (ie: hourly, shift, day, week, salary, piece, commission, or other); any allowances claimed as part of the minimum wage; as well as detailed employer contact information.
  • Further, the notice must be provided both in English and in the employee’s primary language. (The NYS Commissioner of Labor is tasked with creating non-English template notices.)
  • Employers must maintain these notices for six years.
  • An employee who does not receive such a notice within 10 days of hire may report this violation to NYS DOL; in effect bringing action against the employer to recover $50 per week not notified, up to $2,500.

• Information in wage statements— Employers are required to provide comprehensive pay statements each payroll period, specifying applicable dates that wages cover, employee/employer names, address and phone number, the rate or rates of pay and the basis thereof, gross deductions, allowances claimed as part of the minimum wage, and net wages. Non-exempt employees must be provided with statements that include the following additional information: the regular hourly rate or rates of pay, the overtime rate or rates of pay, the number of regular hours worked, and the number of overtime hours worked.

  • Employers must maintain these statements for six years.
• Liquidated Damages — Section 198 was amended to increase liquidated damages from 25% under the current law, to up to 100% of the total amount of wages due. 
• Additional Anti-Retaliation Penalties — Section 215 was amended to allow the NYS Commissioner of Labor to order additional remedies in retaliation actions; including heavy penalties and other recourse.
• Levies — The limitations period for actions brought under the Labor Law is tolled from the latter of the date of the employee complaint to the Department of Labor or the date of the NYS Commissioner of Labor’s commencement of an investigation.

Following a national trend toward strengthening worker-protection, New York now joins several states and localities with wage theft changes this year such as: Maryland, Illinois, Massachusetts, Nebraska and Washington.  

Available for download on GTM.com are the NYS (LS54) Pay Rate Notice Form (for Hourly Employees) and the NYS (LS59) Pay Rate Notice Form (for Exempt Employees).

GTM will continue to monitor these Labor Law changes to provide clients with ongoing support for all of their employment needs.  Our dedicated customer service team is available to answer any questions that clients may have regarding “The Act” in general; or more specifically in regard to calculating rate of pay, overtime rate of pay, or reporting requirements as amended under Section 195; Simply call (518) 373-4111 or email customerservice@gtm.com.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!  With nearly 20 years of experience in the payroll services industry, New York-based GTM Payroll Services has been continually guiding and educating thousands of clients throughout the U.S. with services such as labor compliance, human resources services, workers' compensation and health insurance needs. 

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The items included in this blog are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult the experts at GTM or another professional tax adviser for more information and to determine how any item applies to your personal tax scenario.

NY Labor Law Changes Take Effect November 29th

Provisions Under New York’s Domestic Workers’ Bill Of Rights Take Effect November 29^th

Important update for New York Employers regarding changing Labor Laws,
from the nanny payroll tax experts at GTM Payroll Services

Earlier this year, the landmark signing into law of New York’s Domestic Workers’ Bill of Rights, amended the state’s labor law, executive law and workers' compensation law; as they relate to the employment of domestic workers. 

On November 29, six specific provisions under this new law will go into effect.  Of particular importance is the establishment of regulations impacting:

1. Pay Frequency
2. Overtime Compensation
3. Time off (Unpaid and Paid)
4. Insurance
5. Notification to Employees and Record Keeping
6. Protection from Unlawful Discrimination

GTM recommends that all NYS employers review these changes to the labor laws, and take the appropriate action necessary for compliance, by or on November 29, 2010.  Please click here for more detailed information on each of the above provisions and steps that need to be taken. 

GTM will continue to monitor this legislation to provide clients with ongoing support to aid with all of their household employment needs.  Our customer service team is available to answer any questions that clients may have regarding this law.  Simply call (800) 929-9213 or email customerservice@gtm.com.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!  With nearly 20 years of advocacy for the professionalism of the household employment industry, New York-based GTM Payroll Services has been continually guiding and educating thousands of clients throughout the U.S. with services for household employment such as "nannytax", labor compliance, human resources help, workers' compensation and health insurance needs.  Additionally, Guy Maddalone's How To Hire A Nanny: A Household HR® Handbook (Sourcebooks/Sphinx Legal, 2006) has helped set the standard for any family interested in learning how to be a compliant and successful employer.  

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The items included in this blog are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult the experts at GTM or another professional tax adviser for more information and to determine how any item applies to your personal tax scenario.

Important Update for NYS Household Employers ~ NYS Domestic Workers' Bill of Rights Signed Into Law

On Tuesday, August 31 2010, NYS Governor Paterson signed the Domestic Workers Bill of Rights into law, which takes effect November 29, 2010.  The signing of the new law was to amend the labor law, the executive law and the workers' compensation law, in relation to establishing regulations regarding employment of domestic workers including hours of labor, wages and employment contracts.
 
The Domestic Workers Bill of Rights had many amendments, thus leaving out some proposed items passed by the Assembly as well as items that were passed separately by the Senate earlier this year. 

The final Domestic Workers Bill of Rights that was signed into law now establishes the following effective 11/29/10:

Labor Standards:

1. One day of rest every calendar week, waivable by the worker with pay for that day at the overtime rate of 1 and a 1/2 times their regular hourly rate. The day of rest will, whenever possible, coincide with the traditional day of religious worship.
2. After 1 year of work with the same employer, 3 days of rest per year at the regular rate of compensation.
3. It will be an unlawful discriminatory practice for any domestic employer to:

a)    engage in unwelcome sexual advances, requests for sexual favors or other verbal or physical conduct of a sexual nature to a domestic worker when:

i.    submission to such conduct is made a term or condition of the worker's employment;

ii.    submission to or rejection of such conduct by a worker is used as the basis for employment decisions; or

iii.    such conduct has the purpose or effect of unreasonably interfering with a worker's job performance by creating an intimidating, hostile or offensive working environment; or subject a domestic worker to harassment based on gender, race, religion or national origin, where such harassment has the effect of unreasonably interfering with work performance by creating a hostile working environment.

Wage and Hour

1. Consistent with the current law, Overtime pay after 40 hours of work per week for domestic workers who do not live with their employers.  And overtime pay after 44 hours of work per week for live-in domestic workers at a rate of 1 and a ½ times their regular hourly rate.  
2. Department of Labor is given wage and hour enforcement powers for domestic workers.

Insurance

a)    Disability Insurance to part time domestic workers. *  

*According to the ACTs summary provisions' Disability Insurance was listed as it would be required for Part time domestic workers.  However when GTM contacted the NYS Workers Compensation Board, who enforces disability and workers' compensation insurance requirements, they said the law had not actually changed and it is still a 40 hour minimum before domestic employers are required to have disability and workers compensation insurance.  We will continue to monitor this to see if that opinion changes.

GTM recommends that all NYS employers review these changes and make changes to their current employment agreements and handbooks by or on November 29, 2010.

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At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!  With nearly 20 years of advocacy for the professionalism of the household employment industry, New York based, GTM Payroll Services has been continually guiding and educating thousands of clients throughout the U.S. with services for household employment such as "nannytax", labor compliance, human resources help, workers' compensation and health insurance needs.  Additionally, Guy Maddalone's How To Hire A Nanny: A Household HR® Handbook (Sourcebooks/Sphinx Legal, 2006) has helped set the standard for any family interested in learning how to be a compliant and successful employer.  

GTM will continue to monitor this landmark legislation to provide ongoing support to aid you with all of your household employment needs.

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The items included in this blog are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult the experts at GTM or another professional tax adviser for more information and to determine how any item applies to your personal tax scenario.

Summertime Child Care Reminder ~ Child Care Expenses May Qualify for a Tax Credit

(An excerpt from IRS.gov)

A reminder from the household payroll & nanny tax experts at GTM Payroll Services and the IRS, regarding summertime child care.

Did you know that your summer day care expenses may qualify for an income tax credit?

Many parents who work or are looking for work must arrange for the care of children under 13 years of age during the school vacation. Did you know that those child care expenses may help you get a credit on next year’s tax return?

If you’re a parent currently notutilizing the DCAP options available to you, here are five facts the IRS wants you to know about a tax credit available for your child care expenses. The Child & Dependent Care Credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year.

1. The cost of day camp may count as an expense towards the child and dependent care credit.
2. Expenses for overnight camps do not qualify.
3. If your childcare provider is a sitter/ nanny at your home or a daycare facility outside the home, you'll get some tax benefit if you qualify for the credit.
4. The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
5. You may use up to $3,000 of the un-reimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available from the IRS or on GTM.com under Tax Resource Center.

For specific questions, contact GTM’s Household Tax & Payroll Specialists toll-free at (888) 432-7972 or simply click hereto discover your potential Tax Savings using our FREE online tax calculator!   The most accurate tool currently available, including annualized payroll and tax information, GTM’s FREE online tax calculator aids in estimations for Tax Savings which household employers could potentially benefit from, including DCAP and Child & Dependent Care Tax Credit calculations.

Since many qualifications and limitations apply to the various credits, additional information is available at www.IRS.gov. Also, please see the following post:  5 Tax Topics for Taxpayers with Tots & Teens.

At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!

The items included in this blog are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult the experts at GTM or another professional tax adviser for more information and to determine how any item applies to your personal tax scenario.

New York State Senate Passed The Domestic Workers Bill Of Rights

FOR IMMEDIATE RELEASE GTM Poised To Aid Domestic Staffing Agencies & Household Employers   JUNE 3, 2010– (Albany, NY) – Earlier this week, the New York State Senate passed the Domestic Workers Bill of Rights (S2311D) making New York the first state in the nation to move forward with new standards of worker protections for more than 200,000 employees in New York’s household employment industry.   A long-time advocate for the advancement and professionalism of the household employment industry, GTM recently highlighted Senator Savino, the first Senate Sponsor of the legislation, who stated, “They (domestic workers) are our companions to the elderly, housekeepers, and nannies and provide crucial services to those who employ them.  They should be afforded the same rights, respect, and dignity as the rest of workforce in our State.”   Every year, thousands of new families enter the market and take advice from ill informed friends and colleagues who believe you don’t have to pay taxes on workers or abide by labor standards.  This belief and consequential actions are of detriment to those working in households, who are all left penalized by lack of work history and benefits.  As noted in the Senate debate, hundreds of thousands of New Yorkers are able to do their own jobs and keep their families functioning only because they rely on the labor of nannies and caregivers.   GTM Founder and CEO, Guy Maddalone said, “After years of the industry promoting best practices and still only seeing a small percentage of compliance, it appears New York has now decided to take more extreme measures.”  He further stated, “It will be interesting to see how these new measures will impact tax and labor compliance.”   With nearly 20 years of advocacy for the professionalism of the household employment industry, New York based, GTM Payroll Services has been continually guiding and educating thousands of clients throughout the U.S. with services for household employment such as “nannytax”, labor compliance, human resources help, workers’ compensation and health insurance needs.  Additionally, Guy Maddalone’s How To Hire A Nanny: A Household HR® Handbook (Sourcebooks/Sphinx Legal, 2006) has helped set the standard for any family interested in learning how to be a compliant and successful employer.    More information on this important legislation can be found on the New York State Senate website (www.nysenate.gov).  For more information on our tax, payroll, HR and insurance services, visit the household employment experts at GTM.com.

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GTM’s expertise in the household employment and business services arenas enable us to offer the information, services, tools and resources our clients need. For a FREE – No Obligation Consultation for your household or business, contact GTM at 800.929.9213today!  Or chat LIVE with one of GTM’s professional Tax & Payroll Specialists at www.GTM.com.

At GTM we aim to provide access to the most comprehensive employee benefit plans & solutions available with better advice, better service and better value...for an easier life!

Tax Tips - Five Important Facts about Dependents & Exemptions

(An excerpt from IRS.gov)

When you prepare to file your tax return, there are two things that will factor into your tax situation: dependents and exemptions. Here are five important facts that the IRS wants you to know about dependents and exemptions before you file your 2009 tax return.

1. If someone else claims you as a dependent, you may still be required to file your own tax return. Whether or not you must file a return depends on several factors, including the amount of your unearned, earned or gross income, your marital status, any special taxes you owe and, any advance Earned Income Tax Credit payments you received.

2. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,650 on your 2009 tax return. Exemption amounts are reduced for taxpayers whose adjusted gross income is above certain levels, depending on your filing status.

3. If you are a dependent, you may not claim an exemption. If someone else – such as your parent – claims you as a dependent, you may not claim your personal exemption on your own tax return.

4. Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer.

5. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. There is an exception to this rule for certain adopted children. See IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for additional tests to determine who can be claimed as a dependent.

For more information on exemptions, dependents and whether or not you or your dependent needs to file a tax return, see IRS Publication 501,available on IRS.gov.  

**Don't forget about the Child & Dependent Care Tax Credit or your individual DCAP plans.
For information on these tax credits or your nanny tax compliance, contact GTM at (888) 432-7972, visit  GTM.com, or simply click here totry discover your potential Tax Savings using our FREE enhanced online tax calculator!

The most accurate tool currently available, including annualized payroll and tax information, our FREEenhanced online tax calculator aids in estimations for Tax Savings which household employers could potentially benefit from, with NEW DCAP and Child & Dependent Care Tax Credit calculations. 

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GTM’s expertise in the household employment and business services arenas enable us to offer the information, services, tools and resources our clients need. For a FREE – No Obligation Consultation for your household or business, contact GTM at 800.929.9213today! Or chat LIVE with one of GTM’s professional Tax & Payroll Specialists at www.GTM.com.

At GTM we aim to provide access to the most comprehensive employee benefit plans & solutions available with better advice, better service and better value...for an easier life!

 

Federal Minimum Wage Rates To Increase In July

Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees will increase to $7.25 per hour, effective July 24, 2009.

The federal minimum wage is the minimum amount per hour an employer (households and businesses (most business labor types) must pay their employees unless the state of employment has a higher state minimum wage or local prevailing wage. In that case, where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.

More information on this increase can be found on the U.S. Department of Labor website. And for more information on tax, payroll and HR services, visit the experts at GTM.com.

Important Changes on IRAs & Retirement Planning To Keep in Mind For 2008 & Looking Ahead To 2009

Here are a few tax law changes you may want to keep in mind for your 2009 federal tax return:

Contribution Limits Rise for IRAs and Other Retirement Plans

This filing season, more people can make tax-deductible contributions to a traditional IRA.  The deduction is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $53,000 and $63,000, compared to $52,000 and $62,000 last year.

 

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $85,000 to $105,000, up from $83,000 to $103,000 last year.

 

Where an IRA contributor who is not covered by a workplace retirement plan is married to someone who is covered, the deduction is phased out if the couple’s income is between $159,000 and $169,000, up from $156,000 and $166,000 in 2007.  The phase-out range remains $0 to $10,000 for a married individual filing a separate return who is covered by a retirement plan at work.

 

The worksheet in the instructions for Form 1040 Line 32 or Form 1040A Line 17 can help taxpayers figure the IRA deduction.

 

For 2009, the elective deferral (contribution) limit for employees who participate in 401(k), 403(b) and most 457 plans rises to $16,500, up from $15,500 in 2008.  The catch-up contribution limit for employees aged 50 to 70-½, rises to $5,500 in 2009, up from $5,000 in 2008.

 

The adjusted gross incomes (AGI) phase-out range for taxpayers who contribute to a Roth IRA is $159,000 to $169,000 for joint filers and qualifying widows and widowers, compared to $156,000 to $166,000 in 2007. For singles and heads of household, the comparable phase-out range is $101,000 to $116,000, compared to $99,000 to $114,000 in 2007.

For more information, click on the IRS links below:

• IRS FS 2009-1 Highlights of 2008 Tax Law Changes
• Form 1040 instructions (PDF 941K)
• Publication 526 Charitable Contributions

GTM’s expertise in the household and business employment arenas enable us to offer the information, tools and resources our clients need. For a FREE – No Obligation Consultation on Employee Benefits for your household or business, contact GTM at 800.929.9213 today! Or chat LIVE with one of GTM’s Tax & Payroll Specialists at www.GTM.com.

At GTM we aim to provide access to the most comprehensive employee benefit plans & solutions available with better advice, better service and better value...for an easier life!

IRS Increases Mileage Rates to 58.5 cents per mile

The IRS has announced an increase in the optional standard mileage rates for the final six months of 2008. Citing "recent gasoline price increases," the IRS has increased the standard business mileage rate from 50.5 cents to 58.5 cents a mile for all business miles driven between July 1 and December 31, 2008.

GTM encourages all employers to review their employee mileage reimbursement policy. For more information on household or business payroll tax services contact www.gtm.com