Caregiver Agreements

Thursday, June 9, 2011

IRS household employee tax guide (IRS Publication 926 for 2011)

When working with caregiver agreements, it is important to remember the tax implications.  This link takes you to the IRS guide for wages paid in 2011.

If you pay a household worker $1,700 or more in cash wages during 2011, you must deduct Social Security and Medicare taxes and report the wages once a year. This includes reporting any cash you pay to cover the cost of the employee’s transportation, meals or housing. If you do not report the wages on time, you may have to pay a penalty in addition to the overdue taxes.

Friday, April 1, 2011

The Pitfalls of Caregiver Employment: Paying, Withholding, and Reporting Requirements

A person hiring a caregiver must exercise care in the hiring and paying of the caregiver. This applies to any prospective employer of the caregiver, whether the employer is a family member or a trustee who will pay the caregiver from a special needs trust. Besides the practical considerations such as the caregiver's competency and background, there are many legal pitfalls in caregiver employment.

Full article at Special Needs Alliance,

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