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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 08-29-2016, 05:18 PM
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Leigh Leigh is offline
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Default Thinking of Hiring a Temp

I'm considering hiring a temporary employee-it would be for 13 weeks, and only about 15 hours a week. I'm trying to decide what I'll need to pay this person, as well as what my costs will be for worker's comp, unemployment insurance, and federal taxes-weighing the pros and cons of hiring a temp or letting a family of 3 go from daycare (there will be no space for 2 of their 3 here for about 13 weeks because of a previous contract-they knew this when they started, but now are wanting to stay...this can only be done by expanding my license and hiring a temp.).

Is there a safe percentage to plan on paying for these necessities?
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Old 08-30-2016, 08:45 AM
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TomCopeland TomCopeland is offline
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Originally Posted by Leigh View Post
I'm considering hiring a temporary employee-it would be for 13 weeks, and only about 15 hours a week. I'm trying to decide what I'll need to pay this person, as well as what my costs will be for worker's comp, unemployment insurance, and federal taxes-weighing the pros and cons of hiring a temp or letting a family of 3 go from daycare (there will be no space for 2 of their 3 here for about 13 weeks because of a previous contract-they knew this when they started, but now are wanting to stay...this can only be done by expanding my license and hiring a temp.).

Is there a safe percentage to plan on paying for these necessities?
You need to pay at least minimum wage (federal rate is $7.25, your state rate could be higher). You will owe 7.65% Social Security/Medicare taxes, no federal unemployment taxes (not working at least 20 weeks), state unemployment tax (contact your state department of labor for the rate) and workers compensation insurance (contact your state department of labor for the rate).
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Old 08-30-2016, 08:57 AM
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Leigh Leigh is offline
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Originally Posted by TomCopeland View Post
You need to pay at least minimum wage (federal rate is $7.25, your state rate could be higher). You will owe 7.65% Social Security/Medicare taxes, no federal unemployment taxes (not working at least 20 weeks), state unemployment tax (contact your state department of labor for the rate) and workers compensation insurance (contact your state department of labor for the rate).
Thank you! I was planning to just pay a straight $15/hour until I started wondering what the additional costs might be for hiring someone.
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