Follow
Share
This question has been closed for answers. Ask a New Question.
Find Care & Housing
Go to the federal government IRS website...look up the definitions for employee.

all home aides (housekeepers, cooks, nanny, etc) are employees and you must insure W2.

so..here is the problem. If you ignore that and do not do withholding....you will likely be caught. The penality is that your (and only you) will have to pay all that back taxes AND penalties. None of that will fall on the employee. So instead of doing the withholding from the employees pay...you get caught, YOU pay all of it,

how do you get caught? Well...the employee gets hurt and cannot work for a period of time, so they file for workman’s comp. bang, you are caught. Or, after some time they lose the job and go file for unemployment insurance...bang caught.

and, why wouldn’t the employee do that? There is only benefit for the employee...no penality, no downside. Only you get hit (hard) for fraud,

so, just go hire a firm to do your payroll. With just one employee it is really cheap and you can do it all online.
Helpful Answer (1)
Report
FloridaDD Feb 2020
I agree, W-2 should be provided, but strongly disagree that OP will as you say likely get caught.   That to me is the problem.   Most states have minimum enforcement.  There is a community organization near me that publishes a book about what nannies, and includes a survey of what nannies get paid on and off the books. Flagrant disregard of the law and it goes on.
(0)
Report
See 2 more replies
Generally, caregivers MUST get W-2s, not 1099s.  1099s are for independent contractors who set their own hours, provide their own equipment etc.   Unless you have someone who is more like a babysitter and works less than 4 hours a week, this will be wrong.   If your caregiver gives you a properly executed W-4, the withholding can be minimized, but you still owe FICA.   If you are presently employed and the caregiver allows you to work, you may be able to claim a dependent care credit.

Not providing a W-2 can you leave you open to the caregiver suing you years down the road
Helpful Answer (2)
Report

No, caregivers are not 1099 workers.

It would be easier for you if you hired a payroll service that processes payroll, does all taxes and insurances and you pay them, they get a percentage of the payroll.

Remember as an employer you are obligated to match SS/MEDICARE, provide workmans compensation insurance, pay into unemployment, withhold and pay state and federal taxes. Know how much those would cost you and you will see that the service is not gouging you. Labor burden is real and it can be expensive. But it protects everyone involved.
Helpful Answer (2)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter