Expert Insight: Guy Maddalone of GTM

September 24, 2012

by Michelle LaRowe
Editor in Chief

Recently I had the chance to catch up with Guy Maddalone of GTM Payroll Services about his updated book, tax stats, labor and tax compliance and nanny retirement options. From common myths about household employment to how many families really pay legally, here’s what he had to say. 

eNannySource:  Why did you write How to Hire a Nanny: A Household HR Handbook?

Guy: To debunk the myths about household employment! I was amazed at how many people were ignorant about the legal requirements and human resource practices for their domestic employees. The majority of people who employ nannies or other household employees don’t see themselves as “employers” in any business sense of the word. So part of the reason for writing the book was to shed light on the importance of running your household as a genuine business. Another main reason was to open people’s eyes about how nannies and other caregivers are viewed; many people don’t realize that being a nanny isn’t just a part-time job to supplement income or an interim position. For many nannies, it’s their career – and therefore they should be treated as an employee and receive the same benefits that most employees who work outside of the home receive. The book provides not just the legal advice and requirements for being a household employer, but the reasons why it’s so important to do so.

eNannySource: What percentage of families do you estimate don’t pay nannies legally? Why?

Guy: It’s about 90% nationwide. This is mainly due to the ease of paying a nanny “under the table” – the nanny works a number of hours, and gets paid cash with no tax withheld.  As I mentioned before, many families don’t understand the risk to the nanny and themselves in the way of personal injury, lack of unemployment protection and tax evasion.

eNannySource: What are the benefits of using a tax and payroll company like GTM?

Guy: Ease of use and peace of mind. For those who have decided to pay their household employee legally, there is definitely a lot involved; from proper paperwork, producing a paycheck, tax regulations and calculations, to benefits like paid time off and health insurance, to HR practices like interviewing, background checking, hiring, and termination.  A lot of time and accuracy is required, and many families don’t have the time or resources to do all of those things properly. That’s why using GTM is so beneficial for a household employer. We take care of getting them set up with the IRS and their state agencies as a business.  We produce paychecks accurately and on time.  We calculate tax withholdings and submit them as required.  We provide guidance on best practices for human resources.  Additionally, we offer  insurance in many states, which allows us to provide health insurance, workers’ compensation and disability insurance without the family having to do the legwork.  We also offer a 401(k) retirement plan for household workers. Basically, we are a one-stop shop for families.

eNannySource: What are the benefits to families for being compliant with labor and tax laws? For nannies?

Guy: Many first-time families who hire nannies worry about keeping abreast of the legal requirements and mandates issued by federal, state, and local governments. If they decide not to follow the laws and regulations, they may find themselves in a much more time-consuming and frustrating situation.  It could greatly cost them both monetarily and in the lifestyle their family enjoys. Legislatures and courts throughout America are no longer turning a blind eye and instead are enforcing laws and regulations pertaining to household employment at an aggressive rate.

There are many benefits for nannies by being compliant with labor and tax laws.  Nannies are considered employees when they work for a family, at their home, and expect to earn more than $1800 per year.  A few of these benefits include:

• Unemployment insurance coverage – in the case the nanny becomes unemployed, they may be eligible to apply for unemployment insurance.
• Social Security tax credit – this tax will count toward the nanny’s retirement income.
• Workers’ Compensation /Disability coverage – depending on the requirements of the state, the nanny  may be eligible for reimbursement of lost wages if he/she gets hurt on or off the job
• Employment history – helps the nanny in the case of applying for credit or a loan for a car or a home

eNannySource: Tell me about retirement options. I know you’ve recently launched a 401K retirement program for your clients. Can you tell me about that?

Guy: Due to the typically high administrative cost of 401K plans, household employers have traditionally not been able to offer their employees this type of benefit. GTM’s retirement plan provides our household clients an excellent and cost-effective tool to retain and recruit quality employees. With minimal effort, families can open an account for their nannies, housekeepers, elder care providers, or any other household worker, so that their employees can build their retirement income. Domestic workers will have the potential for significant pre-tax savings through a flexible benefit structure and have access to support from advisors who can help guide them with investment decisions. Household employers will have the option to make tax-free contributions into the plan in the form of profit-sharing contributions, which can be used to further reward and retain their household help.

To learn more about GTM visit www.gtm.com .

Guy is a 25 year veteran of the payroll, human resource, and employment services industry. Originally starting with the placement of home healthcare and eldercare services, Guy expanded his business to include nannies and other household staff, and named the company A New England Nanny. In 1991, he founded GTM Payroll Services to provide payroll & tax administration for households, the first in the industry. In 2002, GTM expanded by adding business payroll services as a complement the fast-growing household payroll and tax processing operation.

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The Rise of the Male Nanny

September 23, 2012

by Michelle LaRowe
Editor in Chief

While the United States media has been following mannies Scott Cartmill and Shaun Sturz on ABC Family’s reality docu-series Beverly Hills Nannies, in Bath, England, the media is following the story of manny Michael Kenny, who is the first male student in the education degree program at Norland College, the world-famous college for nannies.

If Kenny completes his four year course work successfully, he will be only the second male in the college’s 120 year history to gradate with the Norland Diploma and the prestigious title of Norland Nanny.

But if anyone objects to working in a female dominated industry, it’s not Michael Kenny.  According to The Telegraph, he doesn’t mind and neither did the school’s first male graduate, Peter Cummings, who was reported as saying “I don’t see any problem. My careers adviser hinted that it was very female-dominated, but I took no notice. Being male has never been an issue with either of the parents that I’ve been with.”

So if the men who commit themselves to learning the ins and outs of the nanny world and the parents who hire them don’t seem to mind, why is there a stigma associated with being a private duty childcare specialist if you’re a man?

Or is there?

In a recent interview I had with Shaun Sturz of Beverly Hills Nannies and real-life nanny to the stars, I asked him if he had to overcome any stereotypes being a male nanny. His response? “I don’t think so. Are there any?  I’ve never met a male nanny before the show.  If there are any, I think things are changing and I’m on the forefront of that. People have always asked me to be their nanny, so I’ve never had to overcome any stereotypes.”

Maybe he’s right.

A quick Google search of “male nannies” showed pages and pages of articles featured in both the print pages and online versions of popular parenting and lifestyle magazines and mainstream news outlets. Is this an indication male nannies are becoming more popular? Maybe, maybe not. But if it’s not, the most interesting search results surely are: the number of nanny placement agencies that specialize in placing male nannies.

In 2006, My Big Buddy was founded as the first male nanny agency in London by two Australian nannies who felt that some children would benefit from the care of an energetic male nanny. Other UK based agencies like Mr. Nanny and Manny Poppins followed suit. And coming in fall 2012, the United States will perhaps get its own first nanny agency exclusively representing male nannies. According to its website www.mannies.com, males looking for home-based work can now apply.

While some parents, agencies, and caregivers may still raise an eyebrow at male nanny candidates, more and more are open to the idea.

When parents look for a nanny, they look for someone who is the right fit for the family. For some families, especially single mom families and families with boys, having a male role model around the house is extremely important, as viewers saw firsthand with Cindy Margolis, who cut back her nanny’s hours to bring a manny into her home.

Each family must identify the right nanny for their family. For some families, it may be that a male nanny better meets their family’s needs. For others, maybe not. Regardless of if the caregiver is a male or female, what’s of ultimate importance is that he or she is qualified, dedicated, and committed to doing the job well, and that he or she sends the message to the children in his or her care that they can be whatever they want to be, and that’s okay.

Posted in Nannies in the News | 1 Comment

Expert Insights: Donna Shannon of The Personal Touch Career Service

September 22, 2012

by Michelle LaRowe
Editor in Chief

Recently I had a chance to catch up with Donna Shannon of The Personal Touch Career Service. I’ve called on Donna to present at several nanny conferences I’ve helped organize over the years and when it comes to job searching in the private service industry, she most certainly knows her stuff. From common mistakes nannies make when looking for a new position, to what to include in an online profile, I’ve asked Donna for her best career advice for nannies. 

eNannySource: What’s the biggest mistakes nannies make when looking for a new nanny position?

Donna: One of the biggest mistakes nannies make is not using all of the recruitment tools available to them.  It’s not enough to be listed with one or two agencies.  Instead, nannies need to work all of the angles. This includes using online sites, listing with multiple agencies, and using their own network.

For example, Facebook has actually become much more important when finding a job.  Many agencies are announcing their open positions in their status updates, instead of paying for advertising.  Make sure to follow all of the major agencies in your area.  But that’s not the only thing that social media can do for the job seeker; some people land new jobs just by asking their online network if they know of any openings.  And of course don’t overlook LinkedIn.com as well – there are some very good nanny groups currently going on LinkedIn.

eNannySource: For nannies who are using online recruiting sites, in addition to or instead of traditional agencies, what can they do to make themselves stand out? Are there any key things they should include in their profile?

Donna: First and foremost, they need to make sure their profile is complete and that there are no spelling or grammar errors.  I know that sounds simple, but spelling and grammar issues are one of the first reasons that candidates are disqualified from a potential job.  It shows a lack of attention to detail.

Next, they should be sure to include a strong skill set, as well as any specialties that they have in child care.  Some examples may include working with special needs children, caring for twins/ multiples, tutoring older children, and experience as an infant care specialist.  Many parents look for nannies with specialties.

eNannySource: What’s your 3 best tips for creating an awesome resume?

Donna: Including a comprehensive skill set is absolutely essential.  This can win a job, plus shows how flexible the candidate is.  Next, don’t use an “objective” statement.  Instead, write a strong profile which explains why you are a great candidate.  Finally, don’t be afraid to show your passion for this work.  Parents want to hire someone who loves to work with children – be sure to let them know that you do.

eNannySource: Is a cover letter important?

Donna: Cover letters are essential as well.  The advantage is that you can completely customize a cover letter to the job, as opposed to making constant changes to your resume.  Plus, using one is standard business practice.

eNannySource :What’s your best piece of advice for nannies currently job searching?

Donna: Don’t give up and leave no stone unturned.  The right family is out there for you, and you don’t know where they may be looking right now.  The people who get hired the fastest are those who use multiple job search methods.

eNannySource: Tell me about your book?

Donna: Updated for 2012, How to Get a Job Without Going Crazy features the latest techniques for the modern job search.

Learn:

• (Almost) Everything You Need to Know about Resumes
• Opening Doors with Creative Cover Letters
• Finding Jobs Online
• 7 Tools HR Uses to Cut You
• Interview Tools and Tricks

The book is available on Amazon.com in both paperback and Kindle versions.

To learn more about Donna Shannon and The Personal Touch Career Services visit www.personaltouchcareerservices.com.

About Donna Shannon

In 2005, Donna left her corporate recruiter position at Rocky Mountain PBS to join the Starkey International Institute for Household Management.  In her new role as the Placement Specialist, she worked directly with candidates to help them gain management positions in some of the most luxurious private homes in the United States.

In 2009, Ms. Shannon established her own business, The Personal Touch Career Services (formerly known as Coyote Visions Employment Solutions). Today, Donna is one of a handful of career coaches in the United States who works specifically with the private service industry. 

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eNannySource Most Frequently Asked Questions

September 21, 2012

In addition to website usage questions, like “How do I reset my password?” or “How do I reactivate my account?” eNannySource regularly receives queries from both parents and nannies about the services we provide and the nanny industry in general.hire scooby doo jumping combo

Here are a few of the most frequently asked questions that we receive, along with the answers to them.

Q. Before we pay to signup, can we see how many families or nannies are listed on your site?

A. Yes! Nonpaying members can log into their account, or create a free one, and conduct a search. We offer a free trial to families who want to be sure there are viable candidates for their position prior to investing in a membership. Nannies are always offered complimentary memberships. While a family is a free trial member, parents can let nannies know of their interest in them by adding nannies to their Top Picks list. Nannies can reciprocate their interest by doing the same.

Q. How can nannies contact families?

A. Nannies can join eNannySource free of charge and reach out to both paying and nonpaying family members to express interest in their family’s profile and/or job opportunity. Nannies can contact paid members directly by using our internal mail system to send an eNanny eMail. Nannies can add free family members to their Top Picks list or send them our “Tell them you want to get in touch” template eMail to alert the family that they are interested in their profile or position. Nonpaying parents who are serious about finding a nanny on the site will then become paying members and contact the nanny directly. For nannies who would like to be able to email and contact both paying and nonpaying family members immediately, they can upgrade to a Gold Nanny Membership. 

Q. How can parents contact nannies?

A. While free members have access to the profiles of all nannies in our database, for parents to contact nannies, they must upgrade to a paying membership. Once they are paid members they can use eNanny eMail to contact nannies or they can call or email directly, if the nanny has opted to make her contact information public. The nanny can also provide contact information through our internal email system.

Q. Are your nannies pre-screened?

A. No, our nannies are not pre-screened. Background screenings are typically done by families once they are ready to extend a job offer and they are included as a condition of employment. eNannySource provides our family members with tools to conduct background screenings.

Q. How good are your background checks?

A.  The quality of a nanny’s background check will depend on many things. First, background screenings are only as good as the information provided. If a nanny’s name is misspelled or her social security number is entered incorrectly, the results could be incomplete or inaccurate. Second, the more thorough a background screening is, the more information can potentially be gathered. While many parents choose to only conduct a national background check, we strongly encourage all parents to conduct county court record checks. Since databases aren’t updated regularly and not all courts have all of their records online, the parents should request that the court records be checked in all counties a nanny has lived in for at least the past 7 years.  While national databases are appropriate to include in a thorough background check and can help parents discover information that needs to be investigated further, county court record checks are more reliable. Parents should be cautioned; however, that even a clean background screening provides no guarantees that an individual has never committed a crime. It simply means that there is no criminal record on file of a crime committed. Background screenings should be one tool in a toolbox of a parent’s screening arsenal that also includes phone and in-person interviews, reference checks, motor vehicle record checks and education verification. The more parents know about a potential nanny, the more educated and informed their hiring decision will be.

Q. How do I become a nanny?

A. Nannies are childcare specialists that are employed by parents to care for their children in the family’s private home. To be a nanny, individuals must have previous childcare experience, a working knowledge of childcare principles and a genuine love of children. Some nannies have educational backgrounds in early childhood education, others are former nurses or psychologists who opted for a new career and still others have attended formal nanny training programs. Many nannies have simply fallen into the field after many years of babysitting or center-based childcare experience. Since there is no license that nannies must obtain prior to securing employment, the qualifications of a nanny may vary by family. At minimum, we believe that a nanny should be 18 years of age, be in good health, have current CPR and first aid certification and have at least 2 years of documented childcare experience.

eNannySource has a dedicated, in-office customer service team available to answer your questions. Please contact us with any questions you have about eNannySource or the nanny industry in general.

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Why You Should Pay Your Nanny an Hourly Rate

September 18, 2012

Many families hiring a nanny to care for their children are stretching their childcare budgets to provide the best, in-home childcare environment for their children. As parents prepare for the financial commitment of hiring a nanny, they often calculate the nanny’s salary in dollars per week or dollars per month terms.

Why should parents bother with offering an hourly wage and keeping track of hours when offering a set salary seems so much easier?

Because by law, nannies are considered “hourly” employees.

Even if the nanny and family are both okay with a weekly or monthly salary wage arrangement, by law, the nanny is considered an hourly employee and must be paid as such.

Since nannies are protected under the Fair Labor Standards Act (FLSA), they are entitled to be paid at least minimum wage for each hour worked. If the state and federal minimum wages differ, the nanny must be paid at the higher rate. Live-out nannies, and live-in nannies in some states, are also entitled to the overtime differential calculated at 1.5 times their base hourly rate for all hours worked over 40 in a 7-day-period.

Even if the family opts to pay the nanny a set weekly salary, the salary must be broken down into the base hourly rate plus the overtime rate and both hourly rates must meet the FLSA standards to be compliant.

Offering a nanny candidate the job on an hourly rate basis both protects the family from wage and hour complaints and provides a basis for computing the occasional overtime that most families will find necessary. It is in the family’s long-term best interest to take the few minutes of additional time and present their job offer with the hourly and overtime rates clearly stated.

If you loved algebra in school, doing the math is easy. For those who are math challenged, HomeWork Solutions, a leading household payroll and tax service, has a free Hourly Rate Calculator available that will both translate your weekly ‘salary’ into appropriate hourly rate terms and provide you with legally (FLSA) compliant language to use in your written work agreement.

Kathy Webb of HomeWork Solutions, a company that specializes in household payroll and has supported hiring families since 1993, offers this advice for families hiring a nanny.

1. Document the compensation agreement in the written work agreement, noting both the hourly and overtime pay rates.
2. If you need the nanny for 9.5 hours a day, but know there might be an occasional late night, do the hourly rate calculations based on a 10 hour day, and guarantee that weekly amount to the nanny.
3. Keep a time card that your nanny signs each week. It does not have to be complicated! A week-at-a-glance calendar kept in a kitchen draw will work well.
4. When occasional overtime is needed, pay the nanny for the extra hours.

Nanny taxes can be complicated. HomeWork Solutions (www.4nannytaxes.com) offers free telephone consultations to eNannySource.com families. Give them a call at 800.626.4829 and they will be happy to answer your nanny tax questions. You can also download, “Conquer the Nanny Taxes” a free tip sheet from their site.

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Expert Insights: Kathy Webb of HomeWork Solutions

September 17, 2012

by Michelle LaRowe
Editor in Chief

Recently I had a chance to talk nanny taxes with Kathy Webb of HomeWork Solutions. Since 1993, HomeWork Solutions has been helping parents navigate the nanny taxes and be legal household employers. In addition to helping parents do things right, Kathy and her team is committed to professionalism in the private service industry and can always be found sponsoring educational programming at INA, APNA, DEMA, Nannypalooza and National Nanny Training Day events.

eNannySource: How did HomeWork Solutions (HWS) get started?

Kathy: In early 1993, several Clinton cabinet-level nominees, starting with Zoë Baird, made front page news when it was discovered that they had failed to report and pay employment taxes for their household employees. The term “nanny taxes” was coined, and it became clear that ignoring tax and legal obligations relative to household employment could be both a career limiting decision and the source of major embarrassment.

HWS’ founders were both legal nanny employers, and sensed a business opportunity providing services to help families understand and comply with their “nanny tax” obligations.

eNannySource: What are the top myths regarding paying nannies?

Kathy: Families, and some nannies, believe that they can “decide” that the nanny is an independent contractor – false – or tell us that there are no good nannies who want to be paid legally – also false. We encourage families when interviewing to explore the financial aspects of legal employment before they make a job offer. Our free Nanny Payroll Calculator will help the family understand and communicate both a nanny’s take home pay after tax deductions, as well the family’s obligation for employer funded taxes.

eNannySource: What are the benefits of being paid legally to nannies?

Kathy: The nanny who is paid legally enjoys the financial protections of unemployment insurance, disability insurance and workers’ compensation. These important safety nets insure that a job loss does not become a financial catastrophe. The nanny will also have verifiably income, so important when seeking credit of any kind. When paid legally, the nanny and her employer are both making contributions to her eventual Social Security account – and the nanny actually pays much less in taxes than if she accepts a 1099 form. Lastly, many nannies qualify for refundable tax credits available to low wage earning workers – for many nannies this proves to be a valuable benefit.

eNannySource: What are the benefits for employers?

Kathy: Families may only claim child care expenses on their personal income tax return when the provider’s tax ID number is provided. Whether the family wishes to take advantage of tax sheltered dollars in a Dependent Care Account, or the Child Care Credit, they have to pay legally. More importantly, many would argue, the family avoids the risks – both financial and reputational – associated with being caught evading the nanny tax. Families are most often caught when the job ends and the discharged nanny files for unemployment benefits.

eNannySource: In your 20 years working with families and their nannies, what changes have you seen?

Kathy: 20 years ago most nannies worked in the field as a temporary career before they moved on to college, completed training in other fields or married and started families of their own. Neither they nor their employers saw this as a profession. Today there are tens of thousands of nannies who have been in the field for 10, 20 or more years! More and more nannies and families understand that nannying is a serious profession. Written work agreements, legal payroll, even benefits such as paid time off and contributions to health insurance are common place today.

eNannySource: How hard is it to manage payroll and taxes?

Kathy: The nanny taxes are complicated. Families do not have an HR department and a payroll department to deal with the details. I have seen estimates that a family can spend 80 hours a year in calculating and issuing payroll, becoming familiar with and completing the quarterly and annual tax reports and filings, and dealing with the occasional workers’ compensation or unemployment audit.

eNannySource: What services do you offer?

Kathy: HomeWork Solutions recognizes that different families want different degrees of outsourcing in the payroll and tax compliance arena. In addition to fully outsourced payroll and tax filing services, we also provide more DIY options which allow the family to pay the nanny directly and outsource the tax return preparation and even tax filings to our specialists. We welcome telephone calls (800.626.4829) and offer free, no obligation consultations to new employers. We also encourage people to visit our website, www.4nannytaxes.com, for helpful information and nanny tax related resources.

Kathy Webb is president and co-founder of HomeWork Solutions. She has extensive experience preparing ‘nanny tax’ payroll taxes, is the author of numerous articles on this topic and has been featured in the Wall Street Journal, Kiplinger’s Personal Finance, and the Congressional Quarterly. She also consulted with Senate staffers in the drafting of the 1994 Nanny Tax Law.

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Letter to Our Editor About Nanny Cams

September 16, 2012

by Michelle LaRowe
Editor in Chief

For parents who employ a nanny, the decision of whether or not to have and/or to disclose the use of a nanny cam is an extremely personal one. It’s a question that involves both legal and ethical considerations and, in my opinion, a close examination of the parents motive for considering one.

First, let’s start with the legal considerations. The laws regarding the use of nanny cams vary by jurisdiction. Local and state laws addressing nanny cams can be different from each other and from federal laws.  According to WECUsurveillance.com, the laws are a complicated patchwork of laws since federal laws don’t pre-empt the state and local laws. This means if your local law is more stringent, it could supersede the state or federal law.

The real bone of contention between the laws deals with the audio recording of parties who have not given consent. Most states allow for the use of video recording with or without consent or permission, provided the laws are respected. For video surveillance, the cameras cannot be placed in an area where a person has a reasonable expectation of privacy, like a bathroom or a nanny’s personal living quarters.

If you’re considering using a nanny cam, it’s best to seek the advice of a law professional or private investigator that is well versed in eavesdropping and wiretapping laws in your area.

Now let’s move onto the ethical consideration. For parents who are considering using a nanny cam, they’ll need to evaluate their ethical beliefs regarding privacy and videotaping their employee secretly.  Nanny and employer relationships are built on trust, and violating that trust can be problematic for some employers. How parents feel about privacy and trust may affect their decision to utilize surveillance.

In addition to the legal and ethical considerations, parents should consider their motive for using a nanny cam. Nanny cams should be used to deter abuse, not to capture it. If a parent feels that their child is being mistreated or neglected, or the parent simply doesn’t trust the nanny, the nanny should be terminated immediately. Parents should never leave their child in the care of anyone, nanny cam or not, with whom they do not trust completely.

Parents typically utilize nanny cams to calm fears or to investigate suspicions. For parents who wish to utilize a nanny cam to calm their fears, they should not let the nanny cam give them a false sense of security. The nanny cam should not be the sole determining factor for assessing the quality of care that their child is receiving, since some interactions will likely take place out of view of the camera.

For parents who want to evaluate the level of care that their child is receiving, stopping in unexpectedly, asking a neighbor to pop in periodically, coming home early without advance notice, checking in by phone throughout the day, and discussing any concerns with their nanny may provide information that can help them access their care giving arrangement.

Once parents have decided to use a nanny cam, they’ll need to decide if they should disclose that they will be using one. While they don’t need to disclose the location of cameras, the International Nanny Association (INA) does recommend that the employer disclose the use of nanny cams to their nanny, preferably before employment begins.

If parents plan to use a nanny cam and know this prior to hiring a nanny, they may wish to include a clause stating such in their nanny/family agreement. If employers wish to install one after their nanny has started, they should discuss the use of cameras with the nanny and give the nanny the option to leave the position, without the fear of negative consequences, according to INA.

Nannies typically do not mind being videotaped while working. Professional nannies respect a parent’s concern for their child’s welfare and may view a nanny cam as a benefit to themselves as well. What better way to show their employer’s that their child is being well cared for then to be recorded providing high quality care? Many nannies view a nanny cam as being a protective measure. Nannies who provide high-quality care and are under surveillance may also be protected from false accusations of abuse, since they are being videotaped during their working hours.

What nannies do mind, however, is being videotaped without their consent. To a nanny, being videotaped without her consent could indicate a lack of trust. Since nanny and employer relationships are built on trust, a nanny who feels that the trust was broken may leave her position.

At the end of the day, parents need to make their own decisions on whether or not to use a nanny cam and whether or not to disclose the use of one to their nanny.

I believe it is best practice for parents to disclose the use of nanny cams and for nannies to always work as if they are being watched.

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5 Signs a Nanny Job is a Scam

September 14, 2012

At eNannySource we caution all of the nannies who use our service to be cautious of nanny employment scams. While we have internal controls in place to weed out illegitimate jobs and immediately investigate any job postings reported to us as suspect, like with any Internet based matching service, users must always be proactive in ensuring their safety.

While our site contains information on job scams, we wanted to use this forum to remind users and those considering using eNannySource of the signs that point to a nanny job being a scam.

While there is no guarantee that if a job shows these signs it’s a scam and if it doesn’t it is not, there are definite things that successful nanny job scams have had in common. If a job has one of these 5 signs, it’s best to disregard the opportunity all together.

1. The job sounds too good to be true. Your mother’s advice is truer now than it ever has been. If a job sounds too good to be true, chances are it is. No legitimate employer is going to offer an inexperienced nanny top salary or offer a full-time salary and benefits package to a nanny prior to ever meeting her. If you’re reading a job listing and say to yourself, “Wow, I can’t believe it”, don’t.

2. The parents are currently in a foreign country but moving to a town near you. “We’re out of the country but relocating to your town” has been the opening line of many job scammers. If the potential employers say they’re in a foreign country, consider if they’re saying so to avoid phone or in-person communication, which is commonplace in nanny job scams.

3. The ad includes Western Union, Moneygram or cash advance. Any job listing that makes any reference to wiring funds or sending a check in advance is undoubtedly a scam. There’s no legitimate reason that a potential employer would send their soon to be employee funds. The traditional money order scam involves a potential employer sending the nanny money (to either purchase something on their behalf from a third party, often after giving a sob story, or as a salary advance), alerting her they sent too much and then asking her to return a portion of it. The problem occurs when the nanny returns the money prior to the funds clearing. The scammers end up with money and the nanny not only loses money out of her own pocket, but also has to pay bank fees. Nannies should not cash checks, money orders or accept wires as part of any pre-employment arrangement. Nannies should never give potential employers money.

4. If a potential employer only wants to communicate via instant messaging, email or text messaging, and when she does, it’s barely in English. The Better Business Bureau suggests that communications with poor grammar or English could point to a scam. They also suggest that potential employers who only want to communicate electronically could be trying to withhold a phone number or hide a foreign accent. It is industry standard that nannies and employers have in-phone interviews and in-person interviews and nannies should insist on each.

5. There is a lack of personal information or job details. Potential employers should provide nanny candidates detailed information about the nanny position that they are offering. They should be able to talk about their children’s interests, preferences and tastes, their jobs and the area where they live.  Parents should also be willing to provide references for the nanny to check. Potential employers who refuse to share important job details and personal information that would allow a nanny to make an educated and informed job decision could be trying to conceal information.

While a majority of nanny job listings are legitimate, as we’ve seen in the media, nanny scams are popular and even college educated nannies fall for them. If something tells you a job isn’t what it seems to be, don’t ignore that feeling. Instead, heed the internal warning and pass on the opportunity to be a potential scam victim.

In the course of using eNannySource if you have any questions about any job listing, please don’t hesitate to contact us. Our in-office customer service team is always happy to answer your questions.

Posted in Nanny Scams | Leave a comment

How to Amend Your Nanny Contract in Writing

September 12, 2012

The written agreement between a nanny and her employers is one of the most important documents in the employee-employer relationship. The responsibilities, rights, and reasonable expectations of both parties are detailed in a nanny contract, protecting everyone involved from any misconceptions or confusion regarding certain aspects of the working relationship that can often lead to disputes or even the loss of a post. However, during the drafting period there are things that even the most diligent contract creator might forget. Also, the needs of a family, as well as the responsibilities of a nanny, can change and evolve over time. Keeping up with these changes in writing is important; it’s not enough to create a nanny contract that’s promptly forgotten. In order for it to be effective and serve its purpose, it must be up-to-date and accurate. If you’re faced with the need to amend your nanny contract, these pointers can help you make the process easier.

• Include a Section Covering Future Amendments in the Original Agreement – When you create the first contract that governs your relationship with a new nanny, you should include a section detailing the proper process for amending the contract in the future. The need for at least one amendment over the term of the contract is nearly inevitable, so it’s wise to plan ahead. Let your nanny know that she’s also able to submit any amendments that she’d like, as the relationship between you and the scope of her responsibilities evolves.
• Get Your Nanny’s Permission – Any changes or amendments to your written work agreement must be agreed upon by all involved parties. This means that you absolutely cannot amend your nanny agreement without the knowledge and permission of your nanny. Before documenting any changes to the contract, you should meet with your nanny to discuss the issue. Such meetings will also give her the opportunity to address any concerns she may have, and to suggest amendments of her own.
• Create a Document Detailing the Nature of the Amendment – To get amendments to your written work agreement in writing, you’ll need to create a separate document just for the amendment. The document should clearly state that all affected parties are in agreement regarding the changes to the existing contract and the names of all involved parties.
• Address Each Change in the Current Contract Separately – Rather than lumping several changes into one paragraph, an effective contract amendment will address each concern separately and thoroughly. All changes should be individually addressed under subheadings that clearly denote the nature of the amendment, noting the date that amendments will go into effect and why the changes are being made. Should you need to refer back to your written employment agreement later, perhaps in the event of a dispute arising or a disagreement regarding compensation, job duties, or hours, a well-organized and concise document will make the process less stressful.
• Obtain the Appropriate Signatures – For a contract amendment to be legally binding everyone who signed the original agreement must sign the amendment. For instance, an amendment to a contract signed by the nanny and both of her employers will not be valid if you and your nanny sign the amendment, but your spouse does not. Make sure that you have all of the required signatures in place before filing your contract away.

It’s not strictly necessary to involve an attorney in the amendment process, though you certainly can if it makes you feel more comfortable to do so. After the amendment document has been created, reviewed, and signed by everyone involved, you should also make sure that everyone who signed the document has a copy of the amended contract for their own personal files. Provided that everyone agrees upon the terms of the amendment and the changes going into effect, there is absolutely no need to create an entirely new written agreement. A properly worded and carefully written amendment to that agreement will serve the same purpose, and will also leave the original document intact for future review. Before signing your amendments or the new agreement, be sure that all provisions are in accordance with state and federal employment laws to prevent accusations of illegal hiring practices or violation of labor laws in the future.

This article is meant for informational purposes only and should not replace the advice of a qualified attorney.

Posted in Nanny Contracts | Leave a comment

Expert Insight: Bob King, Esq. of Legally Nanny®

September 11, 2012

by Michelle LaRowe
Editor-in-Chief

Over the past several years I’ve had the pleasure and opportunity to work with Bob King, Esq. of Legally Nanny® on various nanny related projects. When it comes to hiring (and sometimes firing!) a nanny, he’s most definitely the leading expert in doing things right. Recently I had a chance to catch up with Bob and discuss his business, his service offerings and how Legally Nanny® came to be. 

Here’s what he had to share:

eNannySource: What is Legally Nanny ®?

Bob: Legally Nanny ® is the leading law firm representing household employers and domestic employment and homecare agencies. We are committed to helping parents hire their nanny legally, maximize their tax savings, and provide them with more time to spend with their family.

eNannySource: How did Legally Nanny ® come about?

Bob: When my wife Jennifer and I decided to hire a nanny for our daughter, we were determined to do things right and hire legally. Even with my experience as a labor and employment attorney, it took countless hours to research the complicated federal and state statues that govern household employees. No one person or resource could provide us will all of the California and all of the federal legal and tax information. Legally Nanny ® was born out of our frustration and on the premise that people should be able to hire nannies and other household employees legally and without unnecessary effort and expense.

eNannySource: What services do you offer household employers?

Bob: We offer a flat fee service ($995) to our clients. We’ll get them started and show them how to pay their nanny, pay their taxes, and do it all with the confidence that it’s done legally. This includes filling out every initial federal and state form that is needed, advising on applicable insurance, wage and hour and overtime laws; showing clients how to calculate and pay state and federal employment taxes, including providing a sample payroll tax calculation tailored for their ongoing needs, informing them about strategies to maximize tax savings and drafting a personally tailored employment agreement to confirm the terms of their nanny’s employment and protect their rights in a legally enforceable document. We also provide our clients with our copyrighted Legally Nanny Hiring & Employment Guide for answers to your household employment questions and provide a comprehensive resource packet.

In addition to our flat fee package, we offer other services. We draft and enforce employment, confidentiality and severance agreements and defend and resolve disputes, investigations, audits, wage claims, administrative charges or litigation stemming from household employment situations.

eNannySource: You mentioned work agreements, how important is it for nannies and families to have legally enforceable work agreements?

Bob: Work agreements are extremely important. They confirm the terms of employment that the nanny and parents have mutually agreed upon. They govern the working relationship and can prevent miscommunication and misunderstandings.

eNannySource: We know that for parents who pay legally, there are many advantages. They have peace of mind to know they are employing their nanny legally and don’t have to worry about the consequences of getting caught and they may be entitled to tax credits. What about the nanny? How does being hired and paid legally benefit her?

Bob: Nannies who work for employers who hire and pay legally have access to unemployment and disability insurance, workers compensation, medicare and social security benefits. They also build their employment history and establish credit. In fact, some nannies even may qualify for the federal Earned Income Credit which could result in a tax credit larger than the amount paid in taxes.

eNannySource: Is there anything else you’d like to share?

Bob: In addition to our parent clients, we are also the leading law firm representing domestic employment and homecare agencies. We review and revise client contracts, employment applications, employee agreements and websites. We also advise about proper interview questions, wage and hour issues, intellectual property protection, household employment legal and tax issues and defend and resolve client and business disputes.

To learn more about Legally Nanny®, visit www.LegallyNanny.com.

Bob King, Esq. founded Legally Nanny, the leading law firm providing legal and tax advice to household employers and domestic employment and homecare agencies. Bob represents household employers, domestic employment and homecare agencies, businesses and individuals in a wide variety of legal matters, including defending against claims and litigation from employees and charges and investigations from government agencies.

Bob advises clients on hiring, evaluation, accommodation and termination matters; wage and hour issues; workplace policies, handbooks, agreements and contracts; and resolving client and business disputes. He also serves on the Board of Directors for the National Private Duty Association (NPDA), and as the General Counsel for the Association of Premier Nanny Agencies (APNA). Bob previously served on the Board of Directors for the International Nanny Association (INA), and is also an active member of the California Association for Health Services at Home (CAHSAH). 

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