My friend that hired a crew of 4 CNAs for around the clock care, already had a small business, so she knew how to withhold the taxes and report to Soc. Sec.
lynn, Independent Contractors do pay their own taxes. So the first question is was there an actual contract? If not then they are your employee, usually paid by the hour, and you do their withholding with each paycheck. You keep records and you send the withheld amounts in quarterly to the state tax dept and the feds. It's not a simple thing to learn.
Another important distinction is whether the companion sitter/aide is directly employed by you or by an agency like Visiting Angels, etc. If that is how you procured the services, you just pay the agency bill and they take care of taxes, etc.
If the person is a "companion sitter" you may be able to go 1099. They need to sign contract stating they are independent contractor and you need their SSN so you can turn in 1099. If not, you must payroll from each check. Withhold SS, Medicare, disability, etc from their gross amount and also you must pay "employer's" share of SS, Medicare and Unemployment. These are usually paid in quarterly. There are forms to file which are not difficult to do, but be sure you or an accountant do them so you won't get fines and/or penalties. Also, you might want to get "umbrella" liability policy on your homeowners insurance (or your parents policy - whoever owns the house) to cover having outside employee in the house. If they get hurt they can sue. Doesn't cost much, but is a really good idea.
A caregiver is almost never an independent contractor. The test is; do you tell them when to come to work and when to leave and what to do while there, not detail but generally what to do. You deduct taxes each time you write a check.
I Are the parents employing this caregiver? Is the caregiver an independent contractor with multiple clients? If the caregiver is an independent contractor, she gets a 1099 at the end of the year. The caregiver is then responsible for their own taxes, not your problem. Are you asking if the payments to the caregiver on a 1099 can be deducted from the care receiver's taxes?
Are you paying the caregiver with cash?
If not, you must payroll from each check. Withhold SS, Medicare, disability, etc from their gross amount and also you must pay "employer's" share of SS, Medicare and Unemployment. These are usually paid in quarterly. There are forms to file which are not difficult to do, but be sure you or an accountant do them so you won't get fines and/or penalties.
Also, you might want to get "umbrella" liability policy on your homeowners insurance (or your parents policy - whoever owns the house) to cover having outside employee in the house. If they get hurt they can sue. Doesn't cost much, but is a really good idea.