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First, let me be clear that I’m not a CPA. For specific tax advice, you’ll need to speak with an expert. I’m happy to refer you!
With that understanding, I do want to help you get organized and be sure you have the proper documentation for your tax situation.
Hiring a household employee such as a nanny or someone to help care for your aging parents comes with tax requirements. Often, people will opt to pay their household staff under the table and think of it as a win-win.
Unfortunately, doing so is illegal and could cost you up to $25,000 in fines and penalties.
No one wants that!
Instead, you need to properly pay them and pay any employer taxes associated with having them work for you.
Having full or part-time caregiver could be used as a medical deduction and reduce your burden at year end.
For a complete list of qualifying medical expenses, see page 23 of the IRS Tax Guide for Seniors. For more information on medical expense deductions, see IRS Publication 502.
Figuring all this out probably sounds like a terrifying concept. Especially if you’ve never paid employer taxes before.
Don’t worry SurePayroll makes it easy! They help you stay compliant with both federal and state taxes and give you access to a bank of experts who can help you through both technology and compliance issues.
For your household help, you can set up direct deposit, giving them peace of mind about being paid on time. And SurePayroll will process all the proper forms, deductions, and returns. Phew!
Take the stress out of tax compliance with SurePayroll.