I am hiring a stay at home mom to watch my kids. They will be at her home the majority of the time. She is willing to come to my home when I need it. I don't think it is necessary, but the option is still there non the less. She will only be watching my kids. Do I consider her a nanny, and pay the nanny tax, or is she considered an independent contractor? Thanks for any input.
There is a minimum amount of $ you can per her for her services before she is legally required to declare her income. At that point, you need to get an employer number and pay part of her taxes, or she needs to register as an independent contractor and pay her own taxes.
Or, you can just pay her under the table. Not legal, but not uncommon.
Nope, she is a nanny, not an independent contractor. Go on www.breedlove-online.com or www.gtm.com
I would consider it child care.
According to the IRS Publication 15 and 15A, companion sitters are exempt from federal income tax withholding, FICA, and federal unemployment tax. They are treated as self-employed persons. They are in the catagory of "statutory nonemployees" instead of independent contractors. You don't have to withhold or pay any federal taxes from her paycheck.
Contact your state employment agency for information about state taxes.
Hey-
Check with the state. Quickly, Oregon defines an independent contractor as a person who will set their own hours/ pace to complete a project. Like, if she was to come in and organize your closets, she'd be a contractor.
http://www.oregon.gov/IC/03-whatisic.shtml
Here is a link for you
But, because she is providing a service out of her home, she may be a business owner.
What ever you do, do not let this go. If taxes are not paid properly, you will not get the child care deduction.
Good Luck.
R. Magby
i would think you would do it as child care
Ask her if she is claiming the income, in which case I think you need to consider her as a contractor unless she is a "licensed" daycare provider.
I think a nanny is in YOUR home and a child care provider is in HER home?
You can only claim her on your taxes... IF she is....claiming her income/pay on her taxes.
No matter what her 'title.'
If you are claiming her on your taxes for whatever you are paying her for child-care she is doing for you... and she is not, for example... then she can get in trouble, for not claiming her income/pay, etc.
Denise P is correct. If she cares for your kids in your home then she is a nanny. If she cares for them in her home than she is a child care provider. If you want to claim the child care expenses on your tax return for the tax credit be sure she is claiming the income and you can get her to complete a Form W-10 (http://www.irs.gov/pub/irs-pdf/fw10.pdf). If she claims the income she can also write off expenses for an in-home business. This can benefit her on her taxes but it does take some record keeping (like how many hours and days she has your kids in her home, receipts for food and supplies, etc).
if she's claiming the income then i would consider it day care
