Paying An Assistant

[Unregistered]

I have an assistant that is very part time. Totals to $50 to $100 a month just to come in and cover my appointments. I just pay her cash or check but never withhold or keep track of anything. I am legally unlicensed daycare. Do I have to start doing things like withholding certain amounts for social security? Is she considered my employee by the state? I just told her to keep track of what she makes and it is up to her to claim on her tax forms. Is that bad?

[TomCopeland]

I have an assistant that is very part time. Totals to $50 to $100 a month just to come in and cover my appointments. I just pay her cash or check but never withhold or keep track of anything. I am legally unlicensed daycare. Do I have to start doing things like withholding certain amounts for social security? Is she considered my employee by the state? I just told her to keep track of what she makes and it is up to her to claim on her tax forms. Is that bad?

You have an employee, not an independent contractor. You must withhold social security/medicare taxes and withhold federal and state income taxes. You may owe state unemployment taxes and you may need to purchase workers compensation insurance (depending on your state).

It doesn't matter how little you pay this person or how few hours she works for you. For more on this see my article:http://www.tomcopelandblog.com/2012/03/does-paying-someone-less-than-600-a-year-make-them-an-independent-contractor.html

[Unregistered]

Can I get an EIN if I am not licensed?

What about paying a babysitter for our own kids? The article said even if you paid someone $50 a year?

[TomCopeland]

Can I get an EIN if I am not licensed?

What about paying a babysitter for our own kids? The article said even if you paid someone $50 a year?

Yes, you can get an EIN even if you are not licensed. Hiring a babysitter to care for only your own children is not an employee, because you would not be in the business of child care.