Must be expert business
Attorney/Accountant with in-depth knowledge in Household Employer/Employees vs regular profitable business.. Thank you!
I live in Florida with my wife under the same roof, I have been disabled since a MVA in 1982. Under doctors orders I require LPN care from 40-60 hours a week.
In 1998 I was having trouble with nursing agencies in my area. My PIP coverage is lifetime 100% covered by my insurance company, and they recommended starting our own business to hire LPNs & Aides as employees to work in My Own Home Only For Me. We would become a health care provider and bill them by company invoice weekly for an hourly rate determined by us, and they pay us for the services provided (which they do), and the business is profitable. The Ins Co filed a W-9 when the first bill was submitted and at every year end they send us a 1099 (total yearly payments box  Medical & Healthcare payments). The type of business is a Sole Proprietor
under my wife's name, with IRS FEIN #, Fictitious Name (DBA
), a Payroll processor handles all needed tax compliance and W-3 / W-2s - she is fully compliant. The business taxes are filed with our 1040, all typical business expenses are deducted. Next year we are creating a husband/wife LLC
The reason for this inquiry came up because one out of many Workers Comp brokers she applied to turned the business down because they said it was a Household Employer with Household employees. This was checked over by an online Business Attorney many, many years ago and they said the company is not considered a Household Employer, but I don't remember the reason. The business has never been audited or questioned by the IRS.
I would appreciate an exact professional answer by a business attorney/accountant who is very knowledgeable in this area of the law. I have checked the Internet over and over without finding a clear answer, all answers I've found don't take into account Household Employers pay their employees out of their own pocket without charging someone who looks at them as a medical provider for the services they provide.
The one workers comp company brought this up and it is not mandatory we acquire WC in Florida because the company only has 2 employees and 1 Independent Contractor - you need 4 or more employees for WC to be mandatory.