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Daycare and Taxes>Assistant Caregiver Question
BumbleBee 06:08 PM 06-23-2012
While reading through the Technical Assistance document for Michigan Family & Group Child Care Home, I came across the following:

Caregiver responsibilities.
(1) A caregiver shall be responsible for all of the following provisions:
(c) Provide an adult assistant caregiver with valid CPR and
first aid to act as the caregiver when the caregiver is
unable or unavailable to provide direct care.


I am in the process of getting my certificate of registration for a family child care home (up to 6 kids). I have someone who can be my assistant caregiver if I'm unable to provide care. My question is, do I treat this person as my employee and withhold taxes, ect? This person won't be here on a regular basis, simply when I absolutely cannot provide direct care.

Any help is greatly appreciated. Thanks!
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Childminder 07:03 PM 06-23-2012
If you will be paying more than $600 a year to someone then they will need to be an employee, not an independent contractor.
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Blackcat31 07:32 AM 06-24-2012
Check out Tom Copeland's Blog. He has excellent advice and information about hiring an assistant, substitute and other employees who may work in your program. http://www.tomcopelandblog.com/.serv...er.q=employees
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BumbleBee 09:09 AM 06-24-2012
Thank you!
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TomCopeland 12:44 PM 06-24-2012
Originally Posted by Childminder:
If you will be paying more than $600 a year to someone then they will need to be an employee, not an independent contractor.
No. There is no minimum amount that a person must be paid before they are considered an employee. If you paid a person $1 to help you care for children, this person is an employee and you must withhold social security/medicare taxes. It's only when you have an independent contractor that you must file a Form 1099 if you pay the independent contractor $600 or more.

There is an exception to the general rule that someone who works for you is an employee: someone who is in the business of providing substitute care is an independent contractor.
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BumbleBee 03:48 PM 06-24-2012
Originally Posted by TomCopeland:
No. There is no minimum amount that a person must be paid before they are considered an employee. If you paid a person $1 to help you care for children, this person is an employee and you must withhold social security/medicare taxes. It's only when you have an independent contractor that you must file a Form 1099 if you pay the independent contractor $600 or more.

There is an exception to the general rule that someone who works for you is an employee: someone who is in the business of providing substitute care is an independent contractor.
Thank you for the correction Tom. I just found information regarding this on your blog. One day I will learn to check your blog before I ask questions!

Thanks again!
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Tags:assistant caregiver, michigan, taxes
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