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Worrying About Taxes or Worker's Compensation Families FAQs A recurring question to our client support staff concerns whether a family can treat their household staff as an independent contractor and avoid the entire issue of payroll taxes. The answer is generally NO. Common law (not the tax code) makes the determination of when an employer/employee relationship exists. Under common law, a worker who performs services for you is your employee if you can control what will be done and how it will be done. It does not matter whether you give your household staff great latitude, but rather that you have the right to control the work. It does not matter if the work is performed on a full time or part time basis. It does not matter whether the worker lives with you or not. It does not matter if he/she is paid hourly, daily or a salary. It does not matter how the employee refers to herself or how you refer to him/her in an employment contract. The IRS articulates strict guidelines that differentiate employees and independent contractors to further eliminate confusion (Refer to IRS Publication 926). Nannies, elder care givers, and other domestics are generally considered employees. You are generally obligated for all payroll tax filings and remittances if you pay the worker $1500 or more in the calendar year (2006 & 2007 threshold). If you must file Form W–2 or pay Federal unemployment tax, you will also need to file a Form 1040 (Schedule H), Household Employment Taxes, after the end of the year with your individual income tax return, Form 1040, U.S. Individual Income Tax Return. However, a sole proprietor who must file Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and Form 941, Employer's Quarterly Federal Tax Return, for business employees, or Form 943, Employer's Annual Tax Return for Agricultural Employees, for farm employees, may include household employee tax information on these forms. Other helpful information:
Q:
Is Smile & Love, Inc licensed and bonded? Q:
Is Smile & Love, Inc cover by Workers Compensation coverage as required
by law and comprehensive general liability insurance covering its employees
while providing services to its clients? Q:
How much notice do you need? Q:
Does insurance
cover the cost of non-medical home care? Q:
Do government
programs cover the cost of home care? Medicaid or Medicare? Q:
How do you train your employees? Q:
How do you select your caregivers? Q:Are
your services available for the elderly in nursing homes, assisted living
facilities or bedside sitting in hospital? Q:
Who pays the caregiver - me or you? Q:
Does someone from your office come to our home or hospital for a free
assessment? Q:
Do you keep a journal in our home to document activities and ideas how
to journal? Q:
Do you accept personal checks, credit and debit cards? Q:
Why can't we have only one caregiver for the loved one? Q:
Can the caregiver help with writing out my bills or help with my banking?
Q:
I love my caregiver so much and I like to give a gift?
Q: Before a nanny is hired, can a family do reference
checks on the nanny? Q:
What are the duties of the caregiver? Q:
What about live in help?
Q:
What is better to have a live-in or come-and-go nanny/caregiver? Q:
Can we interview more than one caregiver/nanny? Q:
Can we have a criminal background check on nanny/caregiver that we are
going to hire?
Nannies and CareGivers FAQs Q:
Do I have
to be registered with Smile & Love, Inc to apply for a job? Q:
Can I email my resume as an attachment? Q:
I don't know how to use the computer. How should I apply for a job?
Q:
I still have not heard anything from you. Q:
Should I call once and a while to remind of myself? Q:
Should I call if I change my info? Serving Cook County (Arlington Heights, Barrington, Bartlett, Chicago, Des Plaines, Elk Grove Village, Elmwood Park. Evanston, Forest Park, Glencoe, Glenview, Golf, Harwood Heights, Hoffman Estates, Kenilworth, La Grange, La Grange Park, Lincolnwood, Melrose Park, Midlothian, Morton Grove, Mount Prospect, Niles, Northbrook, Palatine, Park Ridge, Prospect Heights, River Forest, River Grove, Rolling Meadows, Schaumburg, Schiller Park, Skokie, Wheeling, Wilmette, Winnetka), DuPage County (Addison, Bensenville, Bloomingdale, Carol Stream, Clarendon Hills. Darien, Downers Grove, Elmhurst, Glendale Heights, Hanover Park, Hinsdale, Itasca, Lombard, Roselle, Villa Park, West Chicago, Wood Dale,) and Lake County (Buffalo Grove, Deerfield, Highland Park, Lake Zurich, Lincolnshire, Long Grove)
Tel: (847)427-8209 |
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© 2004 Mona Doytchinova All rights reserved. |
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