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Daycare and Taxes>Hiring Employees
EAP 07:22 AM 02-20-2013
My state is changing the rules (again) for subs and now it looks like I will have to hire my own deticated person rather than using the agency I was using. So how hard is it to do payroll taxes etc?
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TomCopeland 12:17 PM 02-20-2013
Originally Posted by EAP:
My state is changing the rules (again) for subs and now it looks like I will have to hire my own deticated person rather than using the agency I was using. So how hard is it to do payroll taxes etc?
If you are doing this yourself, it's a pain in the neck. You need to withhold Social Security/Medicare taxes, withhold state and federal income taxes, pay state and federal unemployment taxes and perhaps purchase workers compensation insurance.

I cover all the federal forms and rules in my 2012 Family Child Care Tax Workbook and Organizer.

You can hire a payroll service to do this for you. Tax preparers also sometimes do payroll.
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EAP 03:46 AM 02-21-2013
If she only works 1 -2 half days per month as a sub can I do a 1099 instead?
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TomCopeland 06:58 AM 02-21-2013
Originally Posted by EAP:
If she only works 1 -2 half days per month as a sub can I do a 1099 instead?
No. If she worked one hour a year you must treat her as an employee.
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sahm1225 03:52 PM 03-14-2013
Is there ever a reason to issue a 1099 for a sub or part time employee? I've heard of other home daycares issuing 1099s before and I'm confused
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EAP 05:31 PM 03-14-2013
I had an activity teacher who I would have issued a 1099 for if I had paid her more than $600.
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TomCopeland 07:06 AM 03-15-2013
Originally Posted by sahm1225:
Is there ever a reason to issue a 1099 for a sub or part time employee? I've heard of other home daycares issuing 1099s before and I'm confused
Form 1099 is issued when you pay an independent contractor $600 or more in one year. Yes, many providers do this, but they are wrong! The only time you have an independent contractor with someone who is caring for children is if the person works for an employment agency or the person is in the business of providing substitute care (has a business name, registers their name with the state, works for a variety of providers, etc.).

So, except for these narrow exceptions, when you hire someone to care for children the person is your employee! This is true no matter how little to pay them. The biggest problem providers who issue Form 1099 will face is if the employee gets injured while working. In this situation it's likely their health insurance won't cover them and it's likely a workers compensation claim. In that case, the provider will be required to pay the worker's entire medical bill plus big penalties.

I don't like telling providers this bad news, but it's a major issue that people should not ignore.
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AngiesCareXYZ 11:08 AM 10-04-2013
I have hired 4 employees in the past 4 weeks. One said she can work up to 20 hrs a week. Now its only 6 hrs per week. Another one never showed up for work on the first day of work. The 3rd is a college student that can only work minimul days and hrs. The 4th assistant that I hired worked 2 days and then poof. shes gone.
I have lost 3 children in the past week because I counted on these employees to be here to deliver or pick up kids from school, and they notified me 10 minutes or so before pickup that they could not come in due to illness or just no show.
I asked my other two assistants if I am a good "New Employer". They both said Yes. I am organized, fun and respectful. At this time I can only afford minimum wage. They all know that with more kids the pay will increase.

So My desperate questions is.....Where do I find good daycare/preschool assistants?
I have placed adds in college help wanted websites, craigslist, penny saver and word of mouth.
I have looked for temp agencies that provide childcare assistants but the pay is $25 plus per hr! I cannot afford that with my current group of children.

Thank you so much and I can't wait to hear back from you.
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TomCopeland 05:10 PM 10-07-2013
Originally Posted by AngiesCareXYZ:
I have hired 4 employees in the past 4 weeks. One said she can work up to 20 hrs a week. Now its only 6 hrs per week. Another one never showed up for work on the first day of work. The 3rd is a college student that can only work minimul days and hrs. The 4th assistant that I hired worked 2 days and then poof. shes gone.
I have lost 3 children in the past week because I counted on these employees to be here to deliver or pick up kids from school, and they notified me 10 minutes or so before pickup that they could not come in due to illness or just no show.
I asked my other two assistants if I am a good "New Employer". They both said Yes. I am organized, fun and respectful. At this time I can only afford minimum wage. They all know that with more kids the pay will increase.

So My desperate questions is.....Where do I find good daycare/preschool assistants?
I have placed adds in college help wanted websites, craigslist, penny saver and word of mouth.
I have looked for temp agencies that provide childcare assistants but the pay is $25 plus per hr! I cannot afford that with my current group of children.

Thank you so much and I can't wait to hear back from you.
If you have colleges or universities that offer degrees in child development, you should post on their bulletin boards, etc. Ask your CCR&R agency for ideas. Ask local child care centers what they do.
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AngiesCareXYZ 01:02 PM 10-09-2013
Thank you. I Will do that.
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smb757 04:01 PM 10-18-2013
Originally Posted by AngiesCareXYZ:
I have hired 4 employees in the past 4 weeks. One said she can work up to 20 hrs a week. Now its only 6 hrs per week. Another one never showed up for work on the first day of work. The 3rd is a college student that can only work minimul days and hrs. The 4th assistant that I hired worked 2 days and then poof. shes gone.
I have lost 3 children in the past week because I counted on these employees to be here to deliver or pick up kids from school, and they notified me 10 minutes or so before pickup that they could not come in due to illness or just no show.
I asked my other two assistants if I am a good "New Employer". They both said Yes. I am organized, fun and respectful. At this time I can only afford minimum wage. They all know that with more kids the pay will increase.

So My desperate questions is.....Where do I find good daycare/preschool assistants?
I have placed adds in college help wanted websites, craigslist, penny saver and word of mouth.
I have looked for temp agencies that provide childcare assistants but the pay is $25 plus per hr! I cannot afford that with my current group of children.

Thank you so much and I can't wait to hear back from you.
I put an ad looking for an assistant on craigslist and got mediocre responses, then I put an ad on care.com and got much better responses.

Tom - I had to pay for a month subscription to place the ad and message applicants, I assume that I can claim that as a business expense?
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daycare 05:44 PM 10-18-2013
not too sure if you have a costco membership, they offer a program called intuit and it only cost me 25$ a month.

I input everything into the computer and it automatically tells me how much to with hold and how much to pay. It also has all the necessary forms that I need so that I can pay my payroll taxes. It's a really cool program and worth every penny....

look into it......
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TomCopeland 08:54 AM 10-20-2013
Originally Posted by smb757:
I put an ad looking for an assistant on craigslist and got mediocre responses, then I put an ad on care.com and got much better responses.

Tom - I had to pay for a month subscription to place the ad and message applicants, I assume that I can claim that as a business expense?
Yes, the cost of ads to hire an assistant are 100% tax deductible.
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BrooklynM 09:59 PM 10-23-2013
Originally Posted by TomCopeland:
Form 1099 is issued when you pay an independent contractor $600 or more in one year. Yes, many providers do this, but they are wrong! The only time you have an independent contractor with someone who is caring for children is if the person works for an employment agency or the person is in the business of providing substitute care (has a business name, registers their name with the state, works for a variety of providers, etc.).

So, except for these narrow exceptions, when you hire someone to care for children the person is your employee! This is true no matter how little to pay them. The biggest problem providers who issue Form 1099 will face is if the employee gets injured while working. In this situation it's likely their health insurance won't cover them and it's likely a workers compensation claim. In that case, the provider will be required to pay the worker's entire medical bill plus big penalties.

I don't like telling providers this bad news, but it's a major issue that people should not ignore.
Are there agencies that provide substitute care? I would be interested in learning more about these. I don't want to hire anyone, but it would be nice to know I had a backup if I needed one. I am in the San Francisco bay area.

Thank you!
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SSWonders 02:53 AM 10-24-2013
If I use an assistant on a part time basis and she also works at two other homes, is she still my employee or a sub contractor?
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TomCopeland 11:31 AM 10-24-2013
Originally Posted by SSWonders:
If I use an assistant on a part time basis and she also works at two other homes, is she still my employee or a sub contractor?
Not simple answer. It depends. She needs to be in the business of providing substitute care to be considered an employee. Here's two articles that explain this:
http://www.tomcopelandblog.com/2011/...ntractors.html
http://www.tomcopelandblog.com/2011/...ontractor.html
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