OK, gonna put this out there. I have ability to hire a couple of caregivers, but how can I / mom pay them wo having to be their "employer" and take out payroll taxes, apply for an EIN # etc...
Is 1099 difficult and or appropriate? Has anyone ever done the above? I did talk to an accountant. He had a friend going through same situation and he QUIETLY told me that his friend to paid "under the table". He stated that his friend got much better and more "reliable" help with this method. Of course he was not giving me advice to do such, but it has been a thought now?
You just have to fill out a form of what you paid an employee that corresponds with the checking account. It is the employees responsibility to do their own taxes.
https://www.agingcare.com/search?term=payroll+taxes
I would not encourage anyone to pay under the table, it removes money from the social services all these cash workers want to tap in to, all while getting top dollar pay tax free, not from me. This is the type of thing the irs is going to go after with all the new auditors, it could be very costly getting caught paying someone cash, and you are more likely to be caught because you have to get the cash from somewhere, leaving a trail to be questioned.
Your accountant wasn't helpful in guiding you? You made need to find one that is more diverse. This is simple to get you set up correctly.
Oh, if you require a business license to work for you, it alleviates a lot of your liability from getting sued by an injured cash worker, because a cash worker has no insurances or coverage on your insurance until it is a claim. Trust me on this, it is all well and fine, until it isn't.
Do the math, you can do this legally and pay a great wage to get good, honest caregivers. The labor burden isn't that great to make the consequences worth it. Just my opinion.
Would you be willing to work under the table? I wouldn’t. Nor, would I ever pay someone under the table.
No one benefits from this type of arrangement.