Originally Posted by daycarediva:
I spoke to our accountant about this. He said that unemployment insurance and comp would be required if she were to be hired as an employee. Her friends mom runs a dc and would like to use dd as a sub, once she has taken all the required classes and can be legally left alone with the children, too. (she operates 24/7) The accountant said that dd can set herself up as a contractor- which is what my current sub does. (?)
My business/personal is already 100% separate, (I pay myself a set weekly amount from my business account. All business expenses go out of the DC account.)
My dc space is also completely separate from my home.
I currently have an LLC.
The unemployment/comp alone is a HUGE deterrent, almost makes it not feasible financially (not to mention payroll headaches, making sure taxes are deducted and submitted, etc)
Each state has its own rules about whether hiring a daughter requires you to pay unemployment taxes or get workers compensation insurance. Most states don't require this when hiring your own children. Check to be sure this is true for your state.