Tax Implications Of Hiring An Assistant?

[newtodaycare22]

Will this hurt/help me with taxes? Also, is there a certain amount of money they need to make before I pay them officially with taking out taxes and ss...and how do I do all that fun stuff? lol

[TomCopeland]

Anyone that you hire to help you care for children is considered an employee (unless the person is self employed in the business of offering substitute care). You can deduct the wages and state and federal payroll taxes as a business expense. You must treat the person as an employee regardless of how little you pay them or how few hours they work.

See my article on this:http://www.tomcopelandblog.com/2011/...ntractors.html

Join me on February 9th 8:30-10:00pm Eastern Time for my "2011 Family Child Care Tax Update: How to Reduce Your Taxes" :http://events.r20.constantcontact.co...&llr=yatrx4cab

[Sprouts]

I am from NY, how much exactly do I need to deduct from my employees?

[TomCopeland]

You will owe NY unemployment tax of 4.1% of the first $8,500 you pay your employees. You must withhold NY state, NY city or Yonkers income tax. . To determine the amount of income tax you must withhold see Form NYS-50-T New York State, New York City, and Yonkers Withholding Tax Tables and Methods (http://www.tax.ny.gov/pdf/2006/wt/ny...tables_106.pdf). For general information, see Form NYS-50 Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax (http://www.tax.ny.gov/pdf/2006/wt/nys50_506.pdf)

You will also need to purchase workers compensation insurance and disability benefits. Contact the NY Department of Labor for details.

Originally Posted by TomCopeland

You will owe NY unemployment tax of 4.1% of the first $8,500 you pay your employees. You must withhold NY state, NY city or Yonkers income tax. . To determine the amount of income tax you must withhold see Form NYS-50-T New York State, New York City, and Yonkers Withholding Tax Tables and Methods (http://www.tax.ny.gov/pdf/2006/wt/ny...tables_106.pdf). For general information, see Form NYS-50 Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax (http://www.tax.ny.gov/pdf/2006/wt/nys50_506.pdf)

You will also need to purchase workers compensation insurance and disability benefits. Contact the NY Department of Labor for details.

Do you have any information for Texas?

[TomCopeland]

Originally Posted by Unregistered

Do you have any information for Texas?

No. Go to the Texas department of labor website to look for this information.