Banks for You!

In my recent MSN column “When should you pay for convenience?” I noted that hiring someone to clean your house can be “a smart use of your money — or a big drain, depending on how much money you have.”

There’s no question that using such services can save you hours of time and ease tensions in your household, especially if you and other family members constantly argue about whose fault it is that the house/lawn/dog is such a mess.

But these are often the first services people cut when money gets tight, since they’re total luxuries. If you’re sinking into debt or trying to boost your savings, you might want to rethink how much household work you’re outsourcing.

The column prompted one of my Facebook fans to write, “I recently paid to have my house cleaned. I had not done it before. It was a luxury, but wow, what a luxury! Cheaper than a marriage counselor!”

Oh, how I remember that feeling of wonder, coming home for the first time to a spotless, fresh-smelling house! It’s one of the luxuries in life you can really get used to. If you’re caring for an elderly relative who can no longer clean the way she used to, hiring a housecleaner can improve the quality of both of your lives.

But I’ve learned a few things about hiring help, from both sides of the fence: I cleaned houses while I was in college to help make ends meet, and I’ve employed housecleaners ever since moving to Southern California. So if you have got the money to hire a cleaner, here’s how to do it right:

Ask your friends and neighbors. A good housekeeper won’t get a lukewarm recommendation–his customers will rave about him. If the recommendations you’re getting aren’t enthusiastic, keep asking. You want someone who is efficient, honest and who has a great work ethic.

Find someone with whom you can communicate. Your housekeeper doesn’t need to speak the Queen’s English, but you want to make sure she understands what you want and can communicate effectively with you if she has problems or concerns. One of the key areas you’ll need to negotiate right away is how long the housekeeper will need to do a good job on your home; someone who is trying to race through a cleaning is more likely to break stuff in her haste. If a cleaner isn’t meeting your standards, you’ll want to be able to tell her exactly what needs to change and give her a chance to improve; if you can’t understand each other, that can be difficult.

Consider a background check. I’ve never done one of these (or regretted not doing it) for a household employee, but I typically hire people who have worked for several years with people I know. If I were hiring for an elderly relative, I would insist on a background check, since older folks are so vulnerable to dishonest caretakers.

Supervise, but don’t hover. At first, you’ll need to show the cleaner where the supplies are and what you want done. It’s smart to remain on the premises for at least the first few cleanings, in case he has questions. You also should do a walk-through inspection after he finishes, so you can catch and correct any problems (and praise jobs well done).

Don’t be cheap. Wages vary quite a bit across the country, so I can’t give you any set-in-stone guidelines about what your housekeeper should cost. You can ask your friends what they pay and get quotes from some cleaning companies to get a general idea of the range. Shoot for the middle of that range and you should be able to attract good help; cheap out and you may pay for it with a less-than-stellar employee. Also, consider hiring a separate crew if you want your windows done; it’s one of those jobs that can be done a lot faster and better by specialists.

Not happy? Fire away. I made a big mistake many years ago in continuing to employ someone who really didn’t like her work, and who wasn’t all that good at it. It wasn’t until I finally overcame my guilt and canned her that I found the best housecleaner we’ve ever had, who does a fantastic job with a cheery attitude. I wouldn’t sack anyone without giving her a chance to improve, but if she’s been given several chances and still doesn’t measure up, cut your losses.

Pay the taxes. Household employment taxes are a pain in the butt, but sites like The Nanny Tax Company will handle it for a $475 annual fee. You can avoid dealing with taxes by hiring an agency, but you may not have a lot of choice in who is in your home and you’ll typically pay more per hour than if you hire on your own (then again, the agency will likely provide insurance, bonding and background checks, so it might be worth the extra cost to you).

If you want to handle the taxes on your own, you’ll need to:

• Get an employer identification number from the IRS using Form SS-4 (.pdf file).

• Fill out the immigration service’s Form I-9 (.pdf) and keep it in your files.

• Ask for the worker’s Social Security or taxpayer identification number.

• Find out what state taxes you or your worker may owe; you can find a link here.

• Withhold Social Security and Medicare taxes if you’ll pay more than $1,700 in 2011.

• Withhold federal and state income taxes if the worker requests it; have her fill out a Form W-4 (.pdf).

• Make periodic state tax deposits if required by law.

• Provide your worker with a W-2 form (.pdf) by Jan. 31 of the next year.

• File a copy of the W-2 with the Social Security Administration by Feb. 28.

• File a Schedule H with your personal tax return by April 15 and pay any household employment taxes owed.

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