Nannies
Parabeaglex2
270 Posts
Don't know if anyone has any experience with this matter, but I sure as heck don't, so I thought I'd toss it out there.
The owner of the company wants to hire a nanny for his little girl - she would be full time, 40 hrs a week (or more). He has asked me if there are any legal impediments to running the position through the company's payroll. I told him that I honestly didn't know.
I called our work comp insurer and they told me we do have the domestics WC class available to us, so workers' comp is not a problem.
Anyone give me any good reasons, either pro or con, to run this person through our company payroll? The owner doesn't have any problem with providing her benefits in accordance with our policies.
Any input would be appreciated.
The owner of the company wants to hire a nanny for his little girl - she would be full time, 40 hrs a week (or more). He has asked me if there are any legal impediments to running the position through the company's payroll. I told him that I honestly didn't know.
I called our work comp insurer and they told me we do have the domestics WC class available to us, so workers' comp is not a problem.
Anyone give me any good reasons, either pro or con, to run this person through our company payroll? The owner doesn't have any problem with providing her benefits in accordance with our policies.
Any input would be appreciated.
Comments
That just doesn't sit well with me...
However, so far, I haven't been able to find any reason why we can't, so long as we treat her as an employee, subject to our policies and procedures, observe FLSA guidelines, etc.
Why doesn't he just give himself a $10K raise and pay for the daycare himself? It's tax-decuctible. You could introduce him to Flexible Spending Accounts. Handle it any other way but posting an expense to the Nannie account.
I have been there and done that! Our company cafeteria included a cook, who did not cook or prepare a sindle food item for the companies' work force, she did cook some of the finest meals for the executive dining room. It took her 40 hours a week to serve one lunch meal a day, guess where she was for the rest of the day, yep, in the home of the owner keeping house for the owner's family. Our company "goofer" driver was also the personal driver of the owner, our yard man was the personal yard man of the family. One day a week he worked the company lawn, the rest of the week he worked the yard/garden/ or food plots with the finest equipment money could buy.
When the owner's sold, guess what? Some how the IRS found out about all of this forced labor and services and the company had to go through and sort out the value paid by the company on his behalf and wham he got hit with a huge bill for income not paid for several years.
Yes, it can be done but make sure you tell him that every red penny must be charged back to him as personal income. That might be the end of your employment as the HR, but it must be done. Our personnel manager had good sense ($ents) and was able to produce an old memo that he had written to the owner with this notice and his hand written notice to do it any way. The memo was old, but it helped the company from being involved with the scheme.
Don't do it if you can not charge back to the owner.
PORK
Another issue - whenever you are dealing with children, you best be diligent on the hiring, licensing, background checking, etc. If this person turned out to be a pedophile, who is going to be responsible? (The company).
Our practice looked at the possibility of having an onsite daycare center, but the startup cost was enormous - not to mention the potential liability.
As far as background checks go, the nanny has already been selected. He interviewed several through a nanny matching service and they apparently vet every candidate they represent. However, we will be conducting our own checks, using our own vendors, once this person starts.
Wish we could payroll her through the nanny service, but they're matchmakers only - not in the business of employee staffing.
It would have been easier to ask HIM to tell ME one good reason FOR doing it.
Tell me this ain't the same genius who suggested you look into providing frozen, nuclear meals for the hotel guests.
Bottom line is, I have asked the owner to hire the nanny personally and have arranged to run payroll through a "nanny-ADP-type service". The only thing the owner has to do is tell his assistant how many hours she worked that week and this nanny-pay thingie does the rest, including issuing the check, handling payroll deductions, etc.
And, no, Don. This ain't the same guy who recommended the horrid nuke-'em meals. That was just the DO. The guy needing the nanny actually owns the company.
Thanks again, everybody! x:-)
May we all have another Blessed day tomorrow!!!
PORK
Too bad pOrK doesn't get this excited about posts which focus on factual IRCA and FLSA subjects.
Good information.
Gene
Sole owner ran both his limo-driver and maid through the company payroll. All associated charges were captured in a single owner receivable account. At the end of the year, the tax guys would basically "charge" this to the owner as taxable income.
While he did owe the IRS lots of $ he never paid, at least he did not get nailed for not reporting the income.
I don't like the feeling that running personal employees through company, but sometimes you can't stop it. (It worries me about ethics of folks that do this, even if they mean well.) I wouldn't want the liability on the books. Is he going to say his child is an employee?
E Wart