It is becoming more common to have a household employee to help with child care or senior caregivers. If you hire someone on your own then understanding employment tax rules will help you avoid tax pitfalls if you are a household employer. If you pay an agency for finding and supplying the individual that provides this service, then this does not apply.
If you hire someone and control what hours are worked and where and how the work is performed, then you have a household employee. There are Labor Law and payroll tax responsibilities associated with having a household employee and we will address the Labor law aspect in this blog.
You must make sure that your employee is legally allowed to work in the United States. You must have a completed form I-9 with acceptable documents to establish identity and employment eligibility which are listed on the I-9. Keep this form for your records.
As a New York employer, you need to provide your employee with a NY Wage Notice, detailed paystubs, and file for NYS unemployment insurance. If your employee works 40+ hours per week for you, then you must provide workers compensation and disability insurance.
Honorine M. Campisi, CPA
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