{"id":122,"date":"2015-02-19T00:00:00","date_gmt":"2015-02-19T00:00:00","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/2015-tax-changes\/"},"modified":"2015-02-19T00:00:00","modified_gmt":"2015-02-19T00:00:00","slug":"2015-tax-changes","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/2015-tax-changes\/","title":{"rendered":"2015 Tax Changes"},"content":{"rendered":"

When you pay a household employee (like a nanny, babysitter, senior caregiver, housekeeper, etc.) $1900 or more per year, you may have to pay taxes. Here are some of the new tax laws in 2015 that may apply. Scroll to the bottom of the page for more detailed explanations.<\/p>

\"nanny<\/p>

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  1. Mileage Reimbursement Increases <\/strong>
    Does your nanny drive your kids to soccer practice? Does your senior caregiver run errands for you? If your employee is regularly using a personal car for work, she should be repaid.

    The IRS has a standard mileage rate that is used to calculate the cost of cost of gas, maintenance and depreciation of a car used for business purposes. In 2015 that rate increased from 56 cents per mile to 57.5 cents per mile.<\/p>

    Learn more about How to Reimburse a Nanny for Gas and Mileage<\/a>.
     <\/p><\/li>

  2. Minimum Wage Increases <\/strong>
    The minimum wage changed in 21 states and 8 cities for 2015. Here are the new rates.

    Find out more about paying your caregiver minimum wage<\/a>.<\/p>

    States Changes:<\/strong>
     <\/p>
    State<\/strong><\/td>Wage<\/strong><\/td>Effective<\/strong><\/td><\/tr>
    Alaska<\/td>$8.75<\/td>2\/24<\/td><\/tr>
    Arkansas<\/td>$7.50<\/td>1\/1<\/td><\/tr>
    Arizona <\/td>$8.05<\/td>1\/1<\/td><\/tr>
    Colorado <\/td>$8.23<\/td>1\/1<\/td><\/tr>
    Connecticut <\/td>$9.15<\/td>1\/1<\/td><\/tr>
    Delaware  <\/td>$8.25<\/td>6\/1<\/td><\/tr>
    Florida <\/td>$8.05<\/td>1\/1<\/td><\/tr>
    Hawaii<\/td>$7.75<\/td>1\/1<\/td><\/tr>
    Massachusetts <\/td>$9.00<\/td>1\/1<\/td><\/tr>
    Maryland <\/td>$8.00 and $8.25 <\/td>1\/1 and 7\/1<\/td><\/tr>
    Michigan<\/td>$8.15<\/td>1\/1<\/td><\/tr>
    Missouri <\/td>$7.65<\/td>1\/1<\/td><\/tr>
    Montana <\/td>$8.05<\/td>1\/1<\/td><\/tr>
    Nebraska <\/td>$8.00<\/td>1\/1<\/td><\/tr>
    New Jersey <\/td>$8.38<\/td>1\/1<\/td><\/tr>
    New York<\/td>$8.75<\/td>1\/1<\/td><\/tr>
    Oregon<\/td>$9.25<\/td>1\/1<\/td><\/tr>
    South Dakota <\/td>$8.50<\/td>1\/1<\/td><\/tr>
    Vermont <\/td>$9.15<\/td>1\/1<\/td><\/tr>
    Washington <\/td>$9.47<\/td>1\/1<\/td><\/tr>
    Washington DC <\/td>$10.50<\/td>7\/1<\/td><\/tr>
    West Virginia <\/td>$8.00<\/td>1\/1<\/td><\/tr><\/tbody><\/table><\/li><\/ol>

    City Changes:<\/strong>
     <\/p>
    City<\/strong><\/td>Wage<\/strong><\/td>Effective<\/strong><\/td><\/tr>
    Chicago <\/td>$10.00<\/td>7\/1<\/td><\/tr>
    Louisville<\/td>$7.75<\/td>7\/1<\/td><\/tr>
    Montgomery County, MD <\/td>$9.55<\/td>10\/1<\/td><\/tr>
    Prince George County, MD <\/td>$9.55<\/td>10\/1<\/td><\/tr>
    San Diego <\/td>$9.75<\/td>1\/1<\/td><\/tr>
    San Francisco <\/td>$11.05 and $12.25<\/td>1\/1 and 5\/1<\/td><\/tr>
    San Jose <\/td>$10.30<\/td>1\/1<\/td><\/tr>
    Seattle<\/td>$10.00<\/td>4\/1<\/td><\/tr><\/tbody><\/table>

     <\/p>

    1. States Focus on Worker Misclassification<\/strong>
      Do you have your nanny fill out a W-2 or a 1099 tax form? If you said 1099, you should read this part carefully!

      Most nannies and people who work in your home are considered household employees by the IRS, not independent contractors. So they should receive a W-2.<\/p>

      The Department of Labor recently awarded $10.2 million in grants to 19 states in order to enhance enforcement of worker misclassification (calling someone an independent contractor when they're really an employee).<\/p>

      In 2015, these states will be paying closer attention to families who misfile. <\/p><\/li><\/ol>

       <\/p>