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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 02-24-2020, 02:53 PM
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Default Question on Paying a Sub

I want to have someone on call to sub for me on the occasions of appointments. Do I have to hire as an employee and deduct taxes or can I just pay her? and what do I do at end of year? Thanks
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Old 02-24-2020, 03:33 PM
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I want to have someone on call to sub for me on the occasions of appointments. Do I have to hire as an employee and deduct taxes or can I just pay her? and what do I do at end of year? Thanks
You must treat her as an employee unless she is in the business of providing substitute care for other providers. Withhold Social Security/Medicare taxes and file Form 944, W-2 and W-3 at the end of the year. Check with your state department of labor to see if you must pay state unemployment tax or purchase workers compensation insurance.
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Old 02-25-2020, 06:58 PM
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Ok thanks, that sounds complicated and expensive? Hmm maybe I don't want to do this now.
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Old 02-25-2020, 07:12 PM
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Ok thanks, that sounds complicated and expensive? Hmm maybe I don't want to do this now.
Actually she is in the business of substituting for other providers schools and centers, that is her business, job. So that does mean I don't have to do the w-2 and all that right? sorry I got confused.
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Old 03-02-2020, 09:54 AM
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Actually she is in the business of substituting for other providers schools and centers, that is her business, job. So that does mean I don't have to do the w-2 and all that right? sorry I got confused.
Because she is in the business of providing substitute care, she is an independent contractor and you don't need to pay any payroll taxes. Issue her a Form 1099 if you pay her more than $600 in a year. She should have her own EIN number and ideally have a business name.
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