10 Reasons Why People Go in Debt. This summer, I reconnected with an old friend and told her about how my husband and I are paying off our debts in order to travel. “My church offered a debt-free class, but I don’t have a spending problem, so I didn’t go”, she explained. Was she suggesting […]
How Do People Get into Debt? Read More »
I recommend it! If you’re a daycare provider and other home business owner, you may not think you hired any independent contractors, but what about your lawn service? Your window washer? Your handyman? Or the guy who shovels your driveway? These folks aren’t providing services directly to your business, but they do indirectly if you
What About Giving 1099s for Household Services? Read More »
A family child care employer writes: I am ready to hire someone for summer. However, the “employee” I am about to hire would like to offer his services as an independent contractor (1099). Do I just hand him the 1099-MISC and pay him weekly per contract? Is there something that needs to be withheld? Here’s
Child Care worker wants to be an independent contractor Read More »
If you’re a business owner, you must give a Form 1099-MISC to any independent contractors you paid $600 or more for services provided to your business during the year. Sending 1099s is not optional. They are mandatory unless the service provider is a corporate entity. If your service provider happens to be an attorney, however,
1099-MISC Forms are a Snap to Prepare Read More »
Independent contractors are few Persons you pay to come into your home and work in your family child care business are almost always your employees. It doesn’t matter how few hours they work. Daycare assistants are employees whether you hire them for one day, one week, or an entire year. Full-time, part-time, it doesn’t matter.
Child Care Workers are Almost Always Employees Read More »
But you may have other 1099 contract workers Persons you pay to come into your home and work in your family child care business are almost always your employees. It doesn’t matter how few hours they work. They are employees whether you hire them for one day, one week, or an entire year. Full-time, part-time,
1099 Child Care Helpers Are Rare Read More »
You are not required to speak to IRS personnel unless officially summoned As part of the IRS’ new program to step up enforcement, they are going to start contacting taxpayers directly via telephone calls if they have a question, are preparing to audit the taxpayer, or are engaging in collection activity against the taxpayer. Like
Beware of Your Rights Before the IRS Read More »
Most parents and child care providers know there is a tax benefit associated with child care costs. From the many emails I am receiving, however, I can see that there is a lot of confusion out there. Read more for a sample of the questions that are coming in. My wife and I are hoping
Is a Tax id Number Needed to Claim the Dependent Care Credit? Read More »
What’s legally required? A family child care provider writes: Can you please tell me two things? Are we required by law to submit a statement to parents with a TOTAL for their taxes? If so where do I find the law? I heard the only regulation was to provide your ID number. Also, if the
Do I have to give out my tax id number and/or a total to parents? Read More »
Family child care providers are not required by law to provide parents with their identification numbers or to provide parent receipts. If the parent left your program in 2021, you are not required to locate them and provide them with this information. However, if you have good relationships with the parents in your program, I
Give your Tax ID Number to Parents using Form W-10 Read More »
Protect the privacy of your social security number Self-employed business owners need an Employer Identification Number (EIN) if they have employees. Daycare providers, with or without employees, have another reason to obtain this tax id number for their business: IDENTITY THEFT PREVENTION. At the end of the year, parents will be requesting your tax id
Child Care Providers and other Sole Proprietors: Get an EIN Read More »
Nanny – 1099 vs W2? A nanny in Texas writes: I was babysitting in the children’s home for 16 weeks and got paid $4,100. I have asked the mother for a W-2 and she says she doesn’t have to give me either a W-2 or a 1099 because I was just a babysitter. She set
How does a nanny file her taxes without a W-2 or 1099? Read More »
