Daycare.com Forum

Go Back   Daycare.com Forum > Daycare and Taxes

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.

Reply
 
Thread Tools Display Modes
  #1  
Old 08-08-2014, 03:36 PM
nanglgrl's Avatar
nanglgrl nanglgrl is offline
Daycare.com Member
 
Join Date: Jul 2012
Location: Iowa
Posts: 1,572
Default Assistant/substitute..independent contractor or employee?

I'm going to need to pay someone to perform as a substitute in my daycare while I run my son to preschool and pick him up (about 10 hours a week). I will probably also use them (when their schedule allows) for additional duties like when I volunteer at my children's school or am sick. I plan on having them state their rate and will only need set hours for the times I'm running my child to/from school.
Does anyone know how I can make sure I'm following IRS guidelines to make sure they are an independent contractor and not an employee or if there is any way to do that? I really don't want to mess with the hassle of having an employee.
Reply With Quote
  #2  
Old 08-08-2014, 03:38 PM
Thriftylady's Avatar
Thriftylady Thriftylady is offline
Daycare.com Member
 
Join Date: Aug 2014
Location: Ohio
Posts: 5,887
Default

I am thinking you just need a contract with them stating they are an independent contractor?
Reply With Quote
  #3  
Old 08-08-2014, 04:20 PM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 15,692
Default

Quote:
Originally Posted by nanglgrl View Post
I'm going to need to pay someone to perform as a substitute in my daycare while I run my son to preschool and pick him up (about 10 hours a week). I will probably also use them (when their schedule allows) for additional duties like when I volunteer at my children's school or am sick. I plan on having them state their rate and will only need set hours for the times I'm running my child to/from school.
Does anyone know how I can make sure I'm following IRS guidelines to make sure they are an independent contractor and not an employee or if there is any way to do that? I really don't want to mess with the hassle of having an employee.
I am pretty sure she would have to be an employee unless she runs her own business being a sub for other child cares. Here is Tom Copeland's blog about this. I'm sure it explains it much better.

http://www.tomcopelandblog.com/2011/...ontractor.html
Reply With Quote
  #4  
Old 08-08-2014, 04:28 PM
nanglgrl's Avatar
nanglgrl nanglgrl is offline
Daycare.com Member
 
Join Date: Jul 2012
Location: Iowa
Posts: 1,572
Default

Thank you. You know I'm trying to get around this whole hiring an employee thing legally. We have a college nearby, I wonder if I hired a music student to give a music lesson while I run to the preschool if that would be considered an IC? Or if the person who substitutes for me also does so for other providers would they then be considered an IC? I know a person that does this, they have their own contract and business cards but I'm not sure if they are doing it the right way according to the IRS...here's hoping Tom Copeland chimes in.
Reply With Quote
  #5  
Old 08-08-2014, 04:48 PM
Blackcat31's Avatar
Blackcat31 Blackcat31 is offline
 
Join Date: Oct 2010
Posts: 15,692
Default

Quote:
Originally Posted by nanglgrl View Post
Thank you. You know I'm trying to get around this whole hiring an employee thing legally. We have a college nearby, I wonder if I hired a music student to give a music lesson while I run to the preschool if that would be considered an IC? Or if the person who substitutes for me also does so for other providers would they then be considered an IC? I know a person that does this, they have their own contract and business cards but I'm not sure if they are doing it the right way according to the IRS...here's hoping Tom Copeland chimes in.
I will move the thread to the tax section so there's a better chance Tom will see this and respond.
Reply With Quote
  #6  
Old 08-08-2014, 06:38 PM
nanglgrl's Avatar
nanglgrl nanglgrl is offline
Daycare.com Member
 
Join Date: Jul 2012
Location: Iowa
Posts: 1,572
Default

Quote:
Originally Posted by Blackcat31 View Post
I will move the thread to the tax section so there's a better chance Tom will see this and respond.
You're the best Blackcat!
Reply With Quote
  #7  
Old 08-09-2014, 02:03 PM
TomCopeland's Avatar
TomCopeland TomCopeland is online now
Business Author/Trainer
 
Join Date: Jun 2010
Location: St. Paul, Minnesota
Posts: 2,754
Default employee

Quote:
Originally Posted by nanglgrl View Post
Thank you. You know I'm trying to get around this whole hiring an employee thing legally. We have a college nearby, I wonder if I hired a music student to give a music lesson while I run to the preschool if that would be considered an IC? Or if the person who substitutes for me also does so for other providers would they then be considered an IC? I know a person that does this, they have their own contract and business cards but I'm not sure if they are doing it the right way according to the IRS...here's hoping Tom Copeland chimes in.
The only way a substitute could be an independent contractor is if the person was in the business of being a substitute. This means they would have a business name, register their name with the state, work for other providers and uses their own contract.

If you were present and hired someone to come in and do a music lesson, this person would be an independent contractor.

But, the person you describe is an employee, unless she meets the definition of an independent contractor I've described above.
__________________
http://www.tomcopelandblog.com
Reply With Quote
Reply

Tags
assistant, employee, independent contractor, substitute

Thread Tools
Display Modes

Posting Rules
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Update On Independent Play Issue mamamanda Daycare Center and Family Home Forum 10 07-01-2014 04:57 AM
independent play mamamanda Daycare Center and Family Home Forum 12 05-29-2014 10:50 AM


All times are GMT -7. The time now is 01:42 AM.



Daycare.com         Find A Daycare         List Your Daycare         Toys & Products                 About Us

Daycare.com
Please read our Disclaimer before continuing.

Topics pertain mainly to the following States:

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming