Perhaps you remember those “nannygate” stories from the early ‘90s. They dealt with nominees for high federal office whose appointments were derailed by their failure to pay employer withholding taxes for their domestic employees.
p>What does this have to do with you? Well, everything if you’ve hired someone to help with your elderly parents. Whether you think of the person you hired as a babysitter, a caregiver, a nurse’s aide, a housekeeper, a cook or a driver, you may have withholding tax obligations. Check with your accountant or other tax advisor to be sure.
For a good overview of the matter, check out this article from ElderCarePay.com.
» Share This Story
Tags: none
There are 2 Responses to “Taxes and the Paid Caregiver”
#2 Pete - 15 May, 3:13 PM
Great suggestions, Lori. Thanks for taking the time to share them.
#1 Lori - 15 May, 3:12 PM
The best way to go, as far as I’m concerned, is through a homecare agency—not a referral service. Many agencies act as employers for their caregivers, taking responsibility off the family’s plate. These agencies:
• Conduct a criminal background check
• Provide worker compensation insurance
• Maintain liability insurance or bond
• Cover all payroll taxes
• Provide ongoing supervision
• Provide caregiver training
Many agencies are members of National Private Duty Association (NPDA). Since NPDA is fairly new, families may want to broaden their search tactics to find an agency like those I’ve mentioned.
This information was taken, with permission, from the Gilbert Guide website.
Lori Deschene