Tax Day Is Coming April 15! What Does That Mean To You?

It’s that time of year when I get bombarded with questions from au pairs and host families about their tax returns.  First of all, I just want to remind you that I am not an accountant.  And just as you wouldn’t ask me for medical advice because I’m not a doctor, please  understand that I am not an authority on taxes.

Now, that being said, I am happy to share my knowledge with you, based on my own research and experience as both a LAR and a previous host family. However, I want to caution you that tax laws are subject to change, so I will also show you where you can find the appropriate information on the IRS’s website which you may refer to for the latest, most authoritative answer.

Here are some of the common questions asked by host families and au pairs.

1.  Q: Are au pair wages subject to federal income taxes?  A: Yes, the IRS has determined that the au pair’s stipend is considered wages, and therefore subject to federal income taxes.

2. Q: Does the host family have to withhold federal income taxes and issue a form W-2 to their au pair?  A:  No.  Because the IRS considers the au pair stipend to be ” paid for a domestic service in a private home, they are not subject to mandatory tax withholding and reporting on form 941 and W-2.”  If both the au pair and host family agree to have taxes withheld from the au pair’s weekly stipend, then the host family could collect taxes up front and report them on form W-2.  (This is not common).

3. Q: Does the au pair have to pay estimated quarterly income taxes? A.  No.  Because it is unlikely that an au pair’s tax burden will be more than $1,000, he/she is not typically required to pay estimated quarterly taxes.

4. Q: What form should an au pair complete to file his/her taxes? A: Au pairs typically file form 1040NR-EZ.  (Download Directions.)

5. Q: If the host family doesn’t have to issue form W-2 to the au pair,   how does the au pair know what her  wages were?  A:  If the au pair has not kept a record of wages earned, it is easily calculated by taking the weekly stipend (typically $195.75/week) and multiplying that by the number of weeks the au pair worked in the US in 2012. Enter that amount on line 3 of form 1040NR-EZ.

6. Q: Will the au pair owe money? A:  That depends on when he/she arrived in the US.  Complete the form to determine if money is owed.  Submit the signed form whether money is owed or not.

7.  Q: What will happen to the au pair if he/she does not pay US income taxes? A.  It is my understanding that, if an au pair owes US taxes and does not pay them, it may affect his/her ability to obtain a visa to visit the US in the future.  If the au pair does obtain a visa and has an outstanding tax obligation, he/she may be required to pay the tax bill plus  penalties. (There could be other consequences that I am unaware of.)

8. Q: Are au pair wages subject to social security and medicare tax withholding?  A.  In most cases, au pair wages are not subject to social security and medicare tax withholding because of the au pair’s status as a J-1 nonimmigrant and nonresident alien.  If an au pair was in the US prior to becoming an au pair (other than as a tourist), he/she may be considered a resident alient, and might be subject to social security and medicare tax withholding.  This is very uncommon.  Check here if you think this might apply to you/your au pair: http://www.irs.gov/Individuals/International-Taxpayers/Alien-Liability-for-Social-Security-and-Medicare-Taxes-of-Foreign-Teachers,-Foreign-Researchers,-and-Other-Foreign-Professionals

9. Q: Is the fee paid by the host family to Go Au Pair deductible by the host family as a qualified childcare expense?  A.  In my experience, it typically is. (Caution: fees are typically deductible for the tax year that the services were received, not when the fees were paid.  For example, if you paid your fee in December, 2012, but the au pair did not arrive until January, 2013, the fee would be deductible on your 2013 taxes.  Consult a tax professional if you need clarification.)

10. Q: Is the weekly stipend paid to the au pair deductible by the host family as a qualified childcare expense? A.  In my experience, it typically is.  (Childcare expenses are usually deductible as long as childcare was provided while both host parents were at work or looking for work.)

These are the most common questions asked by au pairs and host families.  Please refer to the IRS website, or consult a tax professional before filing your taxes.

Here is a link to the page on the IRS website that explains most of this information:  http://www.irs.gov/Individuals/International-Taxpayers/Au-Pairs.

If you would like to contact the IRS for telephone assistance, you can find the number here: http://www.irs.gov/uac/Telephone-Assistance.

April Is Autism Awareness Month!

Did you know that April is National Autism Awareness Month here in the United States?

Autism is a developmental disability that affects a person’s ability to communicate and interact with others.  The symptoms usually show up in the first 3 years of life.  About 1 in 88 births in the US result in a diagnosis of autism. Although girls can have autism, the disability is more common in boys.

If you are a parent or an au pair caring for a young child, you should know what the “red flags” or possible warning signs are.  According to the Autism Society, these 5 behaviors could indicate that an evaluation is needed:

1.  Does not babble or coo by 12 months old.

2. Does not gesture (point, wave, grab) by 12 months old.

3. Does not say single words by 16 months old.

4. Does not say 2-word phrases on his or her own by 24 months old.

5. Has any loss of language or social skills at any age.

These behaviors do not mean that a child has autism.  But they are symptoms of the disorder, so if you notice them, you should speak to your host family about your concern. The child must be evaluated by a team of professionals before a diagnosis can be made.

Some signs to look for in older children include:

1. Lack of or delay in spoken language.

2. Repetitive use of language or mannerisms

3. Little or no eye contact

4. Lack of interest in peer relationships

5. Lack of spontaneous or make believe play

6. Fixation on parts of objects

Although there is no cure for autism, early detection is very important.  Children who are diagnosed early and receive early intervention receive significantly improved outcomes.  For more information about autism, visit  the Autism Society’s website at http://www.autism-society.org/.

Families with autistic children are welcome to apply to the au pair program.  We often have au pair candidates who have experience caring for autistic children, and many who don’t have experience but are willing and anxious to work with your family.  There is no specific training required within the au pair program for au pairs to work with autistic children.  It is ultimately up to the host family and the au pair to decide if they would like to work together.  We have had many successful placements with families with children with all different types of special needs.  To review our pool of au pair candidates, potential host families should complete an application today!

What’s All The Hype About “The Blizzard of ’78”?

Au pairs in the Boston area have probably been hearing a lot of talk this week about “The Blizzard of ’78”.  Your host parents might remember the great nor’easter as they were most likely young children when “The Big One” hit.  Many au pairs may be asking themselves, “What is a nor’easter?”   Nor’easters occur on the north east coast of North America from Virginia to Canada.  As defined by Discovery Communications,  “A nor’easter is a type of cyclone that can pack hurricane force winds and dump torrents of rain or feet of snow. Cyclonic storms form around low pressure systems in the atmosphere. Unlike their tropical typhoon cousins, nor’easters are fueled by cold air.”

This week marks the 35th anniversary of “The Blizzard of ’78”.  Ironically, a winter storm is predicted to hit the East Coast on the “Big One’s” anniversary.  So, what’s the big deal?

During “The Blizzard of ’78”, cars were stranded on the roads as  up to 30″ of  snow piled up on travelers trying to get home.

“The Blizzard of ’78” was a catastrophic and historic nor’easter that brought blizzard conditions to the northeastern coast of the United States.  The storm caused about $520 million dollars worth of damage and claimed over 100 lives.  Boston, MA and Providence, RI both received close to 30 inches of snow during the three day storm which started on February 5th and ended on February 7th.     The storm included hurricane-force winds with gusts over 100 mph!  A typical nor’easter brings snow for 6-12 hours.  This storm kept dropping that powdery white stuff on the Northeast for over 33 hours, sometimes falling at a rate of 4 inches per hour.

Even though the weather men had predicted the storm, many people did not take heed to these warnings.  New England is known for it’s unpredictable weather.  The running joke around here is, “If you don’t like the weather, just wait a few minutes because it will change!”  Because of this and the fact that many people felt that the meteorologists weren’t always accurate, people went to work and school as if this was just another New England snow storm.  But the weather men were right.  And, as a result, many people became stranded at work, or worse on the highways trying to get home in the storm.  After the storm, thousands of people were stuck in their homes and office buildings for almost a week–some without electricity, heat, food or water!  Over 10,000 people had to go to shelters.

What did we learn from “The Blizzard of ’78”?  Hopefully, we learned to listen to our meteorologists and safety officials.  Be prepared and stay safe during the snow storm.  The storm is supposed to start Friday afternoon, and continue until Saturday night.  Snow accumulation is predicted to be up to 40″.  Wow! That’s a lot of snow.

Of course, the kids are all hoping the hype is for real because they love a good snow day, and the chance to miss a day of school.  I asked some of the au pairs in my cluster what they will be doing with the kids if school is cancelled.

Anna, an au pair from Russia, is not afraid of a little snow!  “We’ll go outside and play in the snow, of course! Assuming it’s not too windy.  If so, we’ll stay in and cook and watch movies!”

Margaryta, an au pair from Ukraine added, “My host children are very excited about the snow fall.  They want to make a lot of snow men and spend the whole day playing outside!”

Monica from Panama is very excited about the snow.  She is in her extension year and was disappointed with the lack of snow last winter.  “I’m not nervous about the storm,” Monica said.  “It’s kind of exciting to see more than 10 inches of snow.   In Panama, you never will see snow. I guess I’ll get to see a big one!” she added.

Well, it looks like Punxsutawney Phil may be out of a job next year.  Stay safe, folks!

Au Pairs and Driving: When Your Precious Cargo Is In Tow

One of the many advantages to hosting an au pair is the fact that the au pair can help with or even take over the duties of the “mom (or dad) taxi service”.  Sometimes this is a huge perk, but if driving is an important part of the au pair’s duties, it is a major inconvenience and possibly even a deal breaker if your au pair has poor driving skills or is a careless driver.

Trust me.  I have first-hand experience in this area.  I had hosted 3 previous au pairs.  So, in my mind, I was an “expert” at finding the perfect candidate for my au pair position.

It was summer time, and as usual, I had purchased a family membership to Hale Reservation so that my children and the au pair would have a fun place to go for outdoor activities—swimming, swimming lessons, sailing lessons, canoeing, fishing, hiking, etc. every day.  My 4-year-old was registered for pre-school 3 half-days per week in the fall.   And my 6-year-old was signed up for various after school activities once school would start.  We live in a suburb.  In order to get to these places, you must go by car.  Since both my husband and I were chained to a desk in the corporate world 5 days a week, it was imperative that the au pair perform these duties.  I was very clear with my au pair candidate that there was a lot of driving involved with this position.  She assured me that she had had her driver’s license for 3 years and this was not a problem.

Well, guess what?  She did, in fact, have her driver’s license for 3 years.  The agencies are required to check that out.   She was from a big city.  So, I thought, “Great!  The other au pairs were from small villages and it took them a few weeks to get used to driving here.  This is good.   She will not be intimated by highway traffic.”  Wrong!

What she had failed to tell me were two important facts.  (1.)  Because she lived in the city, there was no need to drive because public transportation was readily available.  She hadn’t driven a car since the day she obtained her drivers license. (2.) And, perhaps even more disturbing, she had come about obtaining her driver’s license the old fashioned way—by bribing the driving instructor.  It’s true, folks, it still happens in some countries.

Of course, I obtained this information after she had already arrived.  It was pretty obvious on the first “test drive,” that her skills were lacking, bordering on non-existent.  I turned to my agency for help. Although they were very sympathetic to my concerns, there wasn’t really much they could do about it.  The fact is, all the agency can do as part of their screening process is verify that the au pair has a driver’s license, and check her driving record for violations.   Of course, neither of these things were an issue, so even though the au pair could not even back the car out of the driveway, she was able to come to the US as a legal driver!

Our first reaction was to rematch.  We did seriously contemplate this.  But other than the driving, we really liked the au pair, and our kids had instantly bonded with her.  Also, we would have to wait another 6-8 weeks to get a new au pair, and that was out of the question.  Plus, there was the financial part of it.  Much of the fee that is paid to the agency goes towards the agency’s upfront costs. So, even though we would get a refund or a credit, no matter how you looked at it, we would have lost money on this deal.

Since it was summer time, and we had a few months before the kids “had” to be driven anywhere, we decided to give her a chance and put her on probation pending successful completion of drivers training over the summer.  Fortunately for us, she was a very quick learner and quickly won back our confidence.  I was still a little peeved that my children didn’t get to take swimming lessons that I had paid for, but in the scheme of things, it was something that I could live with.

Not everyone is so fortunate.  One of the most common reasons for a rematch between au pairs and host families is an au pair’s inability or inexperience with driving.  The au pair may be a careless driver, a nervous driver, an inexperienced driver or just may not know how to drive.

So, what is my advice to host families?  First of all, it’s difficult to assess the first two scenarios until you are actually behind the wheel with the au pair.  But by asking lots of questions during the interview process, you can minimize your chances of getting an au pair who is inexperienced or simply can’t drive.  Although there are no guarantees, asking poignant questions can help you assess your potential au pair’s driving ability (or at least determine if she has driving experience and/or common sense).  I came across this list on aupairmom.com (a fabulous blog that is published by former host mom, CV Harquail) and thought I would share it with you.  In an article that she wrote entitled “5 Ways to Assess an Au Pair’s Driving Skills when Choosing an Au Pair”, one of her readers posted her “go-to” list that she uses when interviewing potential au pair candidates.  Consider asking these questions during the interview process:

• What is your drivers license number?
• When did you receive your license?
• Do you own a car?
• Does your family own a car?
• In whose car did you practice for your driver’s license exam?
• When did you start practicing for your driver’s license exam?
• When does your driver’s license expire?
• Have you ever driven alone in a car? How often do you do this?
• Have you driven with friends?
• Do your mother and/or father have driver’s licenses?
• Do your siblings (if any) have driver’s licenses?
• Have you looked at the state driver’s license website that I sent you?
• Do you understand the kind of questions that will be on the written test?
• What kind of cars have you driven?
• Have you ever driven a “minivan” or “van” or “SUV” type of car?
• Do you usually drive an automatic transmission or manual transmission?
• Have you ever driven a manual transmission (“stick shift”) car?
• What is the furthest distance you have ever driven?
• What are the usual speed limits on the roads you drive on?
• What kind of bad weather have you driven in? (Snow? Heavy rain?)
• Have you ever driven on icy roads?
• Have you ever used a GPS navigation system?
• At home, when you need to figure out how to drive somewhere, how do you get directions?
• Have you ever gotten lost while driving? If so, what did you do?
• Have you ever been on a road trip (a driving trip to someplace far away) with a friend?
• Have you driven at night?
• How often do you drive at night?
• In your experience, how is driving at nighttime different from driving during the day?
• Have you ever driven with children in the car?
• Is it the law in your country/town to use seat belts?
• How often do you wear a seat belt when driving?
• Do passengers in your car wear seat belts?
• What do you do if a passenger in your car does not want to wear a seat belt?
• Is it typical in your country/town to use “car seats” (baby and child restraint seats) for children?
• Have you ever put a child in a car seat?
• What would you do if you were driving with a child and the child unbuckled its seat belt or got out of the child car seat?
• Is it illegal in your country to drink alcohol and drive a car?

These questions, submitted by hOstCD Mom, are a great place to start.  But you need to accept the fact that there are no guarantees.  And be prepared for the consequences if the au pair’s driving skills fall short of your expectation.

Keep in mind that even the best drivers will probably need a few weeks to adjust to the driving conditions in your area, and will most likely be nervous the first few times that you take her out for a “test drive”.   Make sure you factor in time to take your au pair on these “test drives” without the children in tow.

If it becomes obvious that the problem is beyond needing time for adjustment, ask yourself if you are willing to take the time to teach the au pair to drive.  If you don’t have time to do that, are you willing to pay for driving lessons?  Or would you expect the au pair to pay for driving lessons?  Personally, if the au pair had presented herself as an experienced driver and showed up lacking basic driving skills, I think it’s perfectly fine to ask her to pay for driving lessons.  If she is simply lacking confidence, perhaps you could agree to split the cost of driving lessons that will help her regain her confidence.  Although you can not force her to do that, you do have the option of re-matching.  So, make sure you let her know that you are willing to do that if she is not willing to live up to her part of the deal.  Ideally, this conversation should take place before the au pair arrives so that she knows what is expected of her. This should help you weed out the au pair candidates who are deceptive about their driving skills.

Au Pairs In Charge of Precious Cargo Should Be Honest About Their Driving Ability

If you really like the au pair candidate and she is honest about her driving concerns, and is eager to learn and has basic common sense, then you have to ask yourself if you are willing to work with her.  Ultimately, it is your responsibility as a parent to make sure your children are safe.  Like I mentioned before, our story ended on a positive note.  I’m not sure if we would have matched with that au pair if we had known upfront about her driving skills.  But I like to think that we would have.  After we got over our disappointment in the fact that she hadn’t been upfront with us, we were able to work it out.  But it would have been nice if we had known ahead of time so that we could have made an informed decision and had been prepared upon her arrival.

So, what is my advice to au pairs?  Be honest.  If you know that your host family needs a driver, and you don’t have much driving experience, tell them BEFORE you arrive on their doorstep.  They might be willing to work with you.  And be prepared to live up to your end of the deal by offering to pay for driving lessons if your skills fall short of what is required of the job. Even though you are hoping to be treated as part of the family, you are there to do a job—a very important job.  And above all, the safety of your host family’s children should be your number one concern.

How The Application Process Works

I often get asked questions from friends, families, and acquaintances regarding how the au pair placement process works and how long it takes.  I’ll answer the second question first–the amount of time it takes is really based on your specific needs.  If you want someone from a specific country who speaks a specific language and has experience with a specific age group, then obviously those unique requirements might make the process take a while.  But the average search takes about 6-8 weeks for an au pair who is still in her home country.  We sometimes have au pairs who are “in transition” for whatever reason, and are looking to switch families.  These matches can be completed in as little as one-two weeks.  

In regards to the process–the family completes our application which can be completed online or printed out and mailed into our corporate headquarters in Utah.  As part of the application, the family submits photos and a letter to their perspective au pair telling them a little bit about their family and what life with them might be like.   After the application is received, goAUPAIR will assign a Placement Coordinator to work with the family to help them find applicants that meet their unique needs.  The Placement Coordinator also works with agencies overseas who have au pairs who are interested in matching with American families.  The Placement Coordinator places copies of several candidates’ applications in the host family’s online portal.  The family reviews the applications and then may choose to interview the applicants that appeal to them.  I always recommend that families interview applicants several times before making a decision.  First, contact the perspective au pair by email.  Send a short, friendly email with some suggested times that you would like to call the au pair for a phone interview.  Ask the au pair to confirm a time that is convenient for her/him, keeping in mind that there is likely a time zone difference.  I find that this approach is better than just calling the au pair “out of the blue”.  If she is expecting your call, she is more likely to be prepared and be able to speak without many distractions.  If the conversation goes well, I recommend a follow-up phone call to give both parties the opportunity to ask any additional questions. Recent technology, like Skype, have made it possible for families to actually “see” their candidates  “in person” prior to making a decision.   If this option is possible, I highly recommend doing this.  You can learn a lot about a person by seeing their expressions and body language.  

Recent technology like Skype make it possible for families to "see" their perspective au pair "live" prior to matching.

 

During all interviews, make sure you ask a lot of open-ended questions.  Ask the au pair why she wants to be in the program.  Ask specific questions about her childcare experience, focusing on the age group that your children fall in.  Someone who has a lot of experience taking care of babies might not necessarily be good with a 4-year-old who has temper tantrums.  Ask the au pair what she likes to do in her spare time.  An active outdoor family who likes to take nature hikes might not be a great fit for someone who likes to sit and read quietly in her free time.   If you need your au pair to drive your children to school or activities, make sure you ask a lot of questions about the au pair’s driving experience.  Do not assume that just because an au pair has had a driver’s license for two years, she’s a good driver.  She may have taken her driver’s test two years ago and not been  behind the wheel since then!  

Au pairs should also ask lots of questions to make sure that the family is right for them.   I would be hesitant about an au pair who didn’t ask me a lot of questions.  In many cases, this is the first time this young person has left her home, so why wouldn’t she ask a lot of questions?  Wouldn’t you?  

Sometime during the interview process, the Local Area Representative (LAR) will contact the host family to arrange for a family interview with goAUPAIR.  The LAR will come to the family home and meet with all family members.  A short interview is conducted, and the rules of program are explained.  The LAR will also tour the home and make sure that the au pair will be provided with a private bedroom with suitable accommodations.  

Once the host family has decided to match with an au pair, they will make an offer to her/him.  The au pair does have a right to decline the offer.  This process is called the mutual match.   Once both parties have agreed to match, an appointment is made for the au pair visits his/her embassy to apply for his/her visa.  

Once the au pair receives his/her visa, flight arrangements are made.  All au pairs must complete a 32 hour DVD training course prior to matching with a host family.  goAUPAIR offers a 5 day training session in New York City as a reinforcement to the DVD training for all incoming au pairs.  In addition, the au pairs who attend the live training receive 12 hours of first aid and CPR training by a Red Cross certified trainer.  At the end of the training, the au pair is given a test, and if she passes, she will receive American Red Cross certification in CPR and Child Safety.  Families who would like flexible arrival dates may opt out of the live training and have the au pair arrive directly at their local airport on a date that is convenient for them.  Although all au pairs receive the required training via the DVD series, I highly recommend that au pairs who do not attend live training attend a child safety and CPR course in their area.  Your Local Area Representative or the American Red Cross can help you find a qualified instructor.

Finding That Perfect Au Pair Just Got Easier!

I’m so excited to share this news! goAUPAIR recently launched an enhancement to our website, making it easier than ever for families to find their perfect match. 

This enhancement allows  you to search through a sampling of our available au pairs, by creating your own unique search criteria.  You can search by language spoken, nationality, driving ability, infant qualification, and more.   

After you enter your search criteria, you will be able to view a list of au pairs who meet your requirements.  Although you will not be able to see the au pair’s complete application, you will be able to get a snapshot of the au pair including: name, age, nationality, languages spoken, highest level of education completed, driver’s license status, hobbies/interests, type of childcare experience and age of children cared for, what one of their references said about them, and why they joined the au pair program. 

To view this information, you just need to complete a short registration form which includes your name, address, phone number, and email address.   

Au Pair Marta Enjoying Some New England Winter Fun!

Keep in mind that only some of our available au pairs are featured on our Au Pair Preview.  So if your search does not provide you with enough information, try modifying your search criteria or contact goAUPAIR at 1-888-AUPAIR1, and one of our friendly and talented Placement Coordinators will be happy to help you find the perfect match. 

goAUPAIR is the only agency that offers this service.  Happy searching.