GTM Household Help BLOG

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

Employee Recognition Programs

In times of economic challenges, employers are turning to more non-monetary employee recognition rewards.  Items as simple as a handwritten note from an employer expressing gratitude to an employee, public acknowledgment of an employee going above and beyond the call of duty as well as adding additional perks like a preferred company parking space for their employee of the month award are beginning to be quickly implemented by small and large employers alike.

For more information on how to apply additional HR practices see GTM HR Central or contact your GTM Payroll Service representative at www.gtm.com

IRS Increases 2008 Business Mileage Rate to 50.5 Cents

The IRS has announced that the standard business mileage rate for transportation expenses paid or incurred beginning January 1, 2008, will be 50.5 cents per mile, up from the 48.5 cents per mile rate in effect during 2007.

GTM encourages families to offer the mileage reimbursement rate to their nannies and other household staff that are driving for work purposes. For more information on household payroll tax services contact www.gtm.com or call 800.929.9213.

Benefits for your Nanny--Flu Shots

Fall is well underway here in the Northeast.  Temperatures (and leaves) are dropping and there is frost in the air in the morning.  It’s the time of year when your thoughts turn to holiday shopping, winter comfort food and flu shots.  Yes, flu shots.  If you have household help, be it a maid, nanny or eldercare worker, you should consider offering a flu shot as a benefit during this time of year.  After all, these people are working in your home and caring for a sensitive and vulnerable population, your child or elder relative.  A flu shot will not only protect your family from being exposed to someone with the flu, but will also protect your worker from the flu, from days off and time out sick.  And we all know that prevention is the best medicine.  Your employee will also appreciate the benefit.  And offering benefits is a great way to show that you appreciate your employee.  For more information on hiring, retaining and benefits for your household employee, including employee handbooks and work agreements, visit the experts at www.GTMassociates.com. 

Continuing Education for Professional Nannies

When looking at your nannies qualifications and considering possible benefits, look into your nannies commitment to continuing education in areas that would benefit the family the most.  Having your nanny be up to date on all of the skills necessary to properly care for your family is vital. Childcare skills, communication skills and health and safety skills are all essential to keeping your home a happy and healthy place.  As with all professions, keeping up to date through seminars and training will enhance your nannies experience, as well as your families.  The opportunities are available for your nanny to expand their early childhood behavior and development knowledge, discover valuable social trends and issues, and learn more about health and nutrition, as well as basic CPR and emergency training.  Many activities have been designed specifically to encourage a child’s play/learning time, along with physical activities that can help to maintain fitness and overall health.  And as families today are often faced with stress from many areas, having the skills to help and support a child in dealing with their feelings is important to developing healthy self-esteem.  Understanding the needs of your child at each level of development and knowing how to prepare them for their next stage is one of the best reasons to hire a professional nanny.  Encouraging their desire to expand on their skills is one of the best benefits that you can offer your nanny both for their sake, and for your families.  Many courses can be taken on-line or through the mail, or though local colleges.  Organizations such as the INA (International Nanny Association) can assist you in finding the right types of courses and training for the best results.  For more information on how to hire and retain the best for your family, visit our web site at www.gtmassociates.com.

Mothers Day: A Mothers Net Worth

Mother’s Day is coming, and for the big day, Salary.com has deduced that a mother who works full time, and comes home to the mothering duties, should receive an extra $86,000 a year for her second job, mothering.  This amount came from tallying up such things as housekeeper salary, cooks salary, and everything else that a mother does.  Just don’t expect to pick up the paycheck any time soon.

Most mother’s would agree that no price tag would seem sufficient for all the work that they do.  The job carries with it too many functions that are hard to define.  But when looking at paying your nanny or household help, keep in mind all the things that they do to make your children’s life, your family’s life, and your own life easier.  This is not a job that you want to skimp on.  To hire the best, and retain the best, you need to let them know that you think of them as the best.  For more information on hiring and household HR, visit the experts at www.gtmassociates.com.

Vacation with the Nanny

Vacation time is upon us!  When taking a trip with the family, you may consider taking your nanny with you.  Along with the obvious convenience for the family, it is also a great benefit for your nanny.  However, it is important that you sit down with her ahead of time to discuss the scheduling and hours that you will need her.  Just as when you are at home, the nanny will need to have some downtime scheduled.  And while taking her downtime, she will likely expect that it is her time to do with as she pleases.  That may include a few hours of sight seeing on her own, or sunbathing without the children.  It is possible that she may wish to go out one or two evenings as well.  If your nanny normally works a forty-hour week, and you feel that you will need her for more hours, make that clear.  Perhaps putting it in writing and having both parties sign-off on it would be helpful.  Most of the time, when a family takes along their nanny, they pay the nannies expenses on the way.  That would, of course, not need to include any expenses that she accumulates while using her free time.  It is important to remember that even though you are paying the additional expense, you are, in fact, doing so for your benefit and convenience.  The nanny will still deserve her time off.  For more information on household HR, and for all your household employment needs, visit the household employment experts at www.gtmassociates.com.  And please feel free to contact us with any questions that you would like to have answered in our blog.  We look forward to hearing from you.

De-stress your nanny

Stress.  We all have it, and we all have our own ways of dealing with it.  Stress varies from person to person and from cause to cause.  Caregivers have stress, too.  If you have a nanny or an eldercare giver, take the time to acknowledge that they will have stressful moments in the job, and that they will need to have outlets for their stress.  Offering a periodic day at the spa for a massage can be a great benefit.  Also, allowing the use of your pool & exercise equipment, or providing a gym membership.  We all get stressed and have bad days with our children and elderly loved ones, and so will they.  Looking at their interests and encouraging them to find an outlet for their stress will make for a better relationship between the caregiver and loved one.  Also, allow for the fact that your caregiver may become overwhelmed at some point during their workday.  In the work agreement, be sure to address how they can de-stress right there while on the job.  If they need to call and vent, or they need a quick time out to walk the block, there should be a way that they can safely have the moment that they need in order to deal with the situations they face in a calm and caring manner.  For more information on human resources and for all your household help needs, contact the household employment experts at www.gtmassociates.com.