Isn't it Easier Just to Hire Someone on Your Own?

If you hire a care provider on your own, you will be required by law to do the following:

Before you hire a household employee:

• Obtain an Employer Identification Number from the IRS

When you hire a household employee:

• Find out if the person can legally work in the United States
• Have the employee complete a W4 and keep on file
• Find out if you need to pay state taxes

When you pay your household employee:

• Withhold 6.2% for Social Security Tax
• Withhold 1.45% for Medicare Tax
• Figure and withhold employee's federal tax
• Pay state and federal unemployment tax
• Make advance payments of the earned income credit
• Keep record of employee's cash and noncash wages, social security tax you withhold or agree to pay, Medicare tax you withhold or agree to pay, Federal income tax you withhold, advance EIC payments you make, and state employment taxes you withhold

Each quarter:

• File Form 941, Employer's Quarterly Federal Tax Return
• File Unemployment Insurance Tax and Wage Report
• Pay Unemployment Insurance Tax

By January 31 of each year:

• Give employee Copies B, C, and 2 of Form W-2, Wage and Tax Statement

By February 28 of each year:

• Send Copy A of Form W-2 to the Social Security Administration (SSA)

By April 15 of each year:

• File Schedule H, Household Employment Taxes, with your 2004 Federal income tax return
• File Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

Not only will this create a lot of work for you and your family, you will not have the peace of mind knowing you have a back-up if your care provider becomes sick or has a emergency.

You have enough to do - let us take care of the details.

Are you interested in learning more about how we can help you?

Just give us a call at 303.635.0979 or send us an email.