Nope. Not unless she makes UNDER $1,500 per year. I am supposed to get an Employer Identification Number, pay social security and medicaid and make sure she is eligible to work in the U. S. and withhold taxes from her pay. No wonder nobody does this. It is a royal pain in the butt. (Also, it doesn''t make any difference what state you live in).Date: 2/19/2007 2:07:05 PM
Author: the other Jake
Your babysitter is probably considered an independant contractor rather than employee. If he/she were an employee then you would be required to pay/withhold employment taxes and such. Independant contractors are considered self employed and as such required to report/pay these taxes themselves. The determination of whether someone is an employee or independant contractor is somewhat subjective but mostly relies on the responsibility they have involved their work. It is my understanding you don''t have any obligation to report anything. If for some reason you were to get audited (highly unlikely) you would be justified in stating that they were an independant contractor rather than an employee.
If both you and your husband are employed you may be eligible for a deduction. In which case you would need for your child care provider to give you their name or business name if there is one, an address, and a Social Security or Employer Identification Number. This information will be reported on your 2441 form so that you can claim the Child and Dependent Care Tax Credit.
Here is an article with some more info. Scroll down at look at ''the child care credit'' section. I would discuss your options with a qualified CPA. I''m an audit guyand not a CPA ... yet