Yesterday, Jan. 18th, the New York Times broke a story reporting that Donald Trump’s nominee for White House budget director, Mick Mulvaney, admitted to not paying household employment taxes. From 2000-2004, Mulvaney accrued roughly $15,000 in Social Security, Medicare, federal unemployment and state unemployment taxes that were never paid. He has since paid those taxes, but is now waiting to see how much he will owe in penalties and interest.
This is not the first time a public official has been thrust into the spotlight for paying a household employee under the table. Zoe Baird, Bill Clinton’s nominee for Attorney General, was denied office for the same offence in 1993 – and there have been a steady stream of similar career casualties since then.
Breedlove & Associates (now known as Care.com HomePay) was founded in the wake of the Zoe Baird scandal. We realized many busy families struggle to handle their household employment payroll, tax and HR obligations properly – and the consequences can be devastating even if you’re not seeking public office. Audits and wage disputes can create a nightmare of penalties and problems for professionals in all walks of life. Our goal has always been to eliminate all the work, worry and risks related to household employment.
Let’s let the Mick Mulvaney story (and those before him) be a reminder that professional pay is the right thing and the smart thing to do. In addition to eliminating risk for families, it provides caregivers with the benefits and protections other professionals enjoy (i.e. Social Security, Medicare, Unemployment, Disability, credit worthiness, etc.). At the end of the day, legal pay is just that – the law.
To learn more about how HomePay can handle your household employer tax obligations, please visit us at www.care.com/homepay
