Tax and Legal Changes for 2014

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In preparation for 2014, we wanted to bring to your attention to the tax and legal changes:

  • The new reporting threshold is $1900 in a a calendar year. Effective January 1, 2014, families that pay any individual employee $1,900 or more during the calendar year (increased from $1,800) will be required to follow the household employer wage reporting obligations as outlined in IRS Publication 926.
  • New Mileage Reimbursement Rate is $0.56 per mile. This is a decrease of half a cent per mile.
  • Domestic Worker Bill of Rights. California and Hawaii passed Domestic Worker Bill of Rights legislation this year, impacting overtime requirements for families. Several other states are considering similar bills and we will keep you posted if your state is affected.
  • Health Insurance. Many of the provisions of the Affordable Care Act go into effect beginning January 1. 2014 including mandate for all employees to have health care coverage. However, families with household employees are still NOT required to provide it. (Hawaii is the only exception and the Affordable Care Act did not change this state law).
  • Non-taxable Compensation. Families can provide up to $250 per month for qualified parking (up from $245) and $130 mass transit per month (down from $245) without taxation for the employer or the employee.

Information provided from Breedlove & Associates.

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