Are you Hiring a helper, employee or sub-contractor?

I often hear “I hired a 16 year old neighbor to help in my daycare over the summer, since she is only 16 is she considered an employee?  Yes she is an employee, the same is true of almost anyone you hire to work in your daycare.

We have one exception…If you hire someone that subs for you and other daycare providers, she/he can be considered a sub-contractor, you would give a sub-contractor a form 1099-NEC at the end of the year.  Be very clear being a daycare substitute is their business, they need to be going to more than just your home taking care of children.

Also, if you hire a cleaning person to come to your home and you pay him/her over $600 per year, you must give them a 1099-NEC at the end of the year.  This rule applies whether or not you are in business for your self.

There are many rules when hiring an employee, payroll taxes, workman’s comp insurance, unemployment insurance please call us if you are thinking of hiring an employee, we will be happy to go over the entire procedure with you.

Contact us with all your payroll service needs

651-455-0797 or Email us at daycaretaxhelp@gmail.com