For lot of people, this means work outside of a normal 40-hour work week, but for household workers, this might be different. A household worker might refer to a maid, nanny butler, caretaker, chef, gardener , or anyone who works individually for a homeowner. For these workers, overtime might be determined differently, since a 40-hour work week might not apply to them. However, its basic definition still holds true, so any work that is outside of a person's regular work schedule will have to be compensated by overtime pay.
When it comes time for tax season and filling taxes with the IRS, employers and employee will have to take overtime pay into consideration when filling. If , for whatever reason, overtime pay is overlooked or forgotten during filling, then the IRS may become aware of the mistake and filing an action against you or your employee. This is a common mistake, but many people can actually avoid it with a little help during the busy tax season.
Basics of Including Overtime
It's understandable that busy homeowner and others may not have all of the time in the world to devote to tax filing, which is way getting help with household worker or nanny taxes is always a good idea. Tax help from an expert, one who is familiar with the IRS stipulations regarding household workers and overtime compensation, can help guard against troublesome tax errors. Some of the basic elements of overtime compensation that have to be considered when filing taxes involve:
exemptions and non-exemptions for different employees
defining "overtime" and establishing pay rate for this time worked
differences between live- in employees and other employees and other employees
salary v. hourly employee tax rates and overtime pay
understanding consequences of a wage dispute
These basics, a long with many other more detailed employee-specific tax laws, are sometimes confusing, but if you do not understand them, it/s important that you get help because the last thing you want is an error in filling your taxes.
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