How to Calculate Tax Withholdings from Daycare Substitute?
 

I'm a bit confused about how much to withhold from a future daycare substitutes pay. I also want to make sure I'm making it clear to employees how much I'm withholding (and for what), and well as what they are responsible for paying (if anything).

I live in New York State if that makes a difference.

Thank you!!!

There should be specific tax forms for that. A W2 at the end of the year for sure. You would be required to withhold what any employer legally has to.

employee
 

Originally Posted by LittleScholars:
I'm a bit confused about how much to withhold from a future daycare substitutes pay. I also want to make sure I'm making it clear to employees how much I'm withholding (and for what), and well as what they are responsible for paying (if anything).

I live in New York State if that makes a difference.

Thank you!!!

You must withhold Social Security/Medicare taxes of 7.65%. You must withhold federal and NY state income taxes based on how the employee fills out Form W-4. You must purchase workers compensation insurance.

I hired a sub this year and I would definitely recommend meeting with a tax/payroll professional in your state. There are a ton of things that I wouldn't have known if I hadn't met with someone.

Tom's blog does a good job of explaining the federal stuff that you need to do, but each state and city is different (like in my area, I have to withhold city and school district taxes in addition to state and federal). http://tomcopelandblog.com/the-many-...ng-an-employee

When I met with a tax guy about this it only took about 30 minutes and he never even billed me for it. If he had, it would have been about $75 based on his quote. Totally worth it.