April 2020 Question and Answer

Question:

My company has problems keeping employees, a problem that has escalated this year. What can I do?

Answer:

Record low unemployment has made this a job seeker’s market, but a history of problems retaining employees might suggest that you take a new look at your company’s practices. Start by comparing your salaries, benefits and advancement opportunities to what your competitors offer. Poll your employees anonymously to ask how they view their work environment and work-life balance. Look at your benefits to find gaps you may be able to fill. Throughout the process and after, communicate frequently and effectively.

Question:

I hired a person to do my housekeeping. Do I have to pay or deduct employment and other taxes for this person?

Answer:

This will depend on a number of factors. According to the IRS, housekeepers and other household workers like babysitters and gardeners are your employees if you control their work and how they do it. If you have a household worker you expect to pay more than $2,200 in 2020, you’ll typically have to pay 7.65% of cash wages for Medicare and Social Security taxes, and withhold the same amount (plus income taxes if they ask you to) from the employee’s pay. Talk to your tax professional to learn more.