Question on Paying a Sub
 

I want to have someone on call to sub for me on the occasions of appointments. Do I have to hire as an employee and deduct taxes or can I just pay her? and what do I do at end of year? Thanks

Substitutes
 

Originally Posted by tenderhearts:
I want to have someone on call to sub for me on the occasions of appointments. Do I have to hire as an employee and deduct taxes or can I just pay her? and what do I do at end of year? Thanks

You must treat her as an employee unless she is in the business of providing substitute care for other providers. Withhold Social Security/Medicare taxes and file Form 944, W-2 and W-3 at the end of the year. Check with your state department of labor to see if you must pay state unemployment tax or purchase workers compensation insurance.

Ok thanks, that sounds complicated and expensive? Hmm maybe I don't want to do this now.

Originally Posted by tenderhearts:
Ok thanks, that sounds complicated and expensive? Hmm maybe I don't want to do this now.

Actually she is in the business of substituting for other providers schools and centers, that is her business, job. So that does mean I don't have to do the w-2 and all that right? sorry I got confused.

Substitute
 

Originally Posted by tenderhearts:
Actually she is in the business of substituting for other providers schools and centers, that is her business, job. So that does mean I don't have to do the w-2 and all that right? sorry I got confused.

Because she is in the business of providing substitute care, she is an independent contractor and you don't need to pay any payroll taxes. Issue her a Form 1099 if you pay her more than $600 in a year. She should have her own EIN number and ideally have a business name.