2018 Tax and Wage Issues for Household Employers

2018 Tax and Wage Issues for Household Employers

By A New England Nanny 22 0

2018 tax and wage issues for household employersWith a new year just around the corner, there are several tax and wage issues that will impact household employers, particularly those in New York, including changes to the minimum wage and mileage reimbursement rates.

Minimum Wage
On December 31, 2017, the minimum wage for employers in Upstate New York will rise to $10.40 per hour.

The wage for employers in New York City with 10 or fewer employees must pay $12.00 per hour. Employers in Nassau, Suffolk, and Westchester Counties must pay at least $11.00 per hour.

Mileage Rate
If you reimburse your nanny or other domestic worker for mileage, the standard mileage rates for the use of a car (plus vans, pickups, and panel trucks) are increasing, effective January 1, 2018. The new rates will be:

  • 54.5 cents per mile for business miles driven (was 53.5 cents in 2017)
  • 18 cents per mile driven for medical or moving purposes (was 17 cents in 2017)
  • 14 cents per mile driven in service of charitable organizations (no change from 2017)

New York Paid Family Leave
Beginning January 1, 2018, just about every employer in New York State – including household employers – will need to comply with the New York Paid Family Leave (NY PFL) law. Any employer that has 1 or more employees is required to provide coverage unless they are a public employer or are an employer-only exempt employee.

Employees can use the benefit to:

  • Bond with a newborn, adopted or foster-care child during the first 12 months after birth or placement
  • Care for a seriously ill family member
  • Address important needs related to a family member’s military service

Learn more about what employers and nannies need to know about NY PFL.

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