Hi,
I am looking into hiring people to come into the house and do care tasks for my parents. Does anyone know: -What is the limit on what I can pay people without having to deal with paying taxes on them? Per quarter? Per year? -I don't really mind PAYING the taxes...but I don't know how to do it legally. 1099? How does that work? Thanks in advance |
Hire a payroll service to cut the checks or electronic payments and figure the taxes each week. Payroll services are really inexpensive and allow you to pay workers legally. We had caregivers at Mom's house for over 10 years. We paid legal. We used a payroll service each week. They figured the taxes and cut the checks and made the electronic payments. |
If you hire through care.com they have a service you can pay for that handles all of this. I used it for child care and considered it money well spent. |
OP here. Thanks. For those of you who have hired privately, did you get workers comp insurance on the employees? How did you do that? Thanks |
Homework Solutions is a great company that can assist you with payroll and all of the applicable filings.
Talk to your homeowners insurance about workers comp and what is required |
You have to get workers comp insurance if in DC. I just went to my home and auto company. It was easy and not that expensive annually. Over about 10 years, we had only one claim when our nanny injured herself. It paid lost wages and the orthopedic doctor bills. Well worth the coverage. |