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Daycare Center and Family Home Forum>Taxes For Small Center vs Family Home Child Care
allsmiles 08:51 PM 12-03-2012
ive tried to send pms with no luck.. and also posted in the daycare and taxes forum.. just in case somebody here might know..
if a person has a daycare in a house that is not their residence, it is considered a center here in texas and some other states as well. I was wondering does a home center have the same tax rights as a family home care such as not paying relatives. Im really not interested in worryng about payroll tax, ssa payments, workers comp etc. for my sister and husband who already assist me in my family home child care.
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CrackerJacks 10:57 PM 12-03-2012
I'm in CA, but I would check with your payroll provider. I believe that only your husband may be exempt from the special payroll, ss deductions, and workers comp. I have a sister who works for me and was told by my payroll provider that she was not exempt. So I do pay SS, payroll and workers comp for her. Hope this helps a bit.
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allsmiles 07:04 AM 12-04-2012
thanks for your reply.. i really appreciate it. May i ask are you operating a family home child care or a center? hmm, i was reading the tom copeland blogs and he didnt make reference to type of relatives that were exempt from payment (if you chose not to pay) but i will hopefully get clarification here soon.. Im probably making a big deal out of it though, seems with a payroll provider it wont be that much work on my part..thanks again!
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itlw8 07:17 AM 12-04-2012
anytime someone volunteers you do not have to pay them. Volunteer means works for free. Anyone can be a volunteer they do not have to be related. But if you are bartering their work for childcare it is taxable.
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