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July 2012 Moms
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tax ? - any accountants here?

zyaszyas member
in July 2012 Moms
Hoping one of you can help me out. So the babysitter we just hired said she can register as a 1099 Independent Contractor so we can claim our child care costs  for taxes. Since she will be paying income taxes on what we pay her, I agreed to pay her more an hour since we won't be paying her under the table. Now my question is, does she have to pay into medicare or any medical thing? I don't think she does, but I'm not sure.

Thanks!

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Re: tax ? - any accountants here?

  • zyaszyas member
    wheelerc said:
    If she registers as a 1099 then yes, she will pay FICA taxes (Ss & Medicare) and I can't remember the %ages off the top of my head but they are low. She'll also be responsible for unemployment taxes (typically between $40-$50 a year depending on the state). If you registered her as a W-2 she'd only be responsible for income plus half of FICA and you'd owe the rest! Hope this helps!
    Thank you! Ok, I'm a bit confused though. So if I register her as a W-2 does that mean I take all those deductions off her checks each pay period? What is the best route to go - let her do the 1099 or we register her a W-2? 

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  • zyaszyas member
    Thank you @wheelerc - I really appreciate it! :)

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