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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I have a health care giver working for me. I have been paying

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I have a health care giver working for me. I have been paying her without deducting taxes, as an independent contracter. I should have been deducting payroll taxes. How can I correct this now.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

How long have you been paying this individual as an independent contractor?

MyVirtualCPA :

What you will need to do is file quarterly tax returns for the periods that you paid her as an independent contractor. You will calculate the taxes and remit them to the IRS

MyVirtualCPA :

Her portion of the social security and medicare taxes, you can keep those out of her pay the next time you pay her to reimburse you for the taxes that she should have paid.

MyVirtualCPA :

I would enlist the help of an accountant in your area to clean this up. With one worker, it shouldn't cost more than a couple hundred dollars to get this taken care of. They can then set up the payroll for you and help you ensure you remain current in payroll tax law

Customer:

I have been paying her for the last six months. Will I be payaing a penalty fr late reporting? Do you have to take income tac withholding for a Healthcare giver ?

MyVirtualCPA :

Thank you for your follow up. You may have a slight penalty for late reporting, but you can write the IRS and get this abated for reasonable cause. Also, you should be withholding federal and state taxes from her pay. A tax accountant could help you get all of this situated

Customer:

Thank you for your help. I will follow through with your suggestions.

MyVirtualCPA :

You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today

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