Another appointee to President Trump’s Cabinet has failed to comply with federal and state household employment obligations. Andrew Puzder, the current nominee for Labor Secretary, admitted to hiring an undocumented worker to clean his house for several years. Federal law requires all employers to verify worker eligibility at the time of hire – usually by completing Form I-9. Additionally, Puzder admitted to having to pay back taxes to the IRS and the state of California – meaning the housekeeper was also paid under the table.
Mr. Puzder is the second public nominee found to be non-compliant with household employment payroll, tax or HR obligations, joining White House Budget Director nominee Mick Mulvaney.
Note: Commerce Secretary nominee Wilbur Ross admitted to firing one of his household employees recently after discovering they were not legally permitted to work in the country. The employee had reportedly produced a driver’s license and Social Security card in the past.
These instances continue to highlight a larger nationwide issue that too many household workers are being paid under the table. IRS Publication 926 is very clear on how taxes and payroll should be handled for all domestic workers. Families and their employees take on a great deal of unnecessary risk by not complying with federal and state laws. It’s especially a disservice to employees because payroll taxes fund crucial benefits and protections they need.
The HomePay service exists because these laws are not optional, but rather required of all professional workers. The household employment specialists working here continue to push this point to families and caregivers across the country. We look forward to seeing a time where no one has to deal with the consequences of not following household employment laws.
To learn more about how HomePay can handle your household employer tax obligations, please visit us at www.care.com/homepay
