Do you want to file & pay employment taxes?
Our clients avoid the hassles and payment of payroll taxes because each caregiver is our employee and not your responsibility. This means that Adultcare Assistance Homecare is 100% responsible for all employer related costs including payroll taxes. The following information applies to seniors that hire caregivers through other home care agencies that place independent contractors instead of employees. These companies may divert the employer related tax responsibility to you.
The IRS Household Employee Tax Rates
|Social Security Tax|
12.4% of cash wages *
2.9% of cash wages *
Up to 6.0% of cash wages *
|Arizona Unemployment Insurance Tax Rates|
* Additional and updated information available in the IRS Publication 926.
The IRS has 16 pages of instructions for individuals with household employees called the IRS Publication 926 – Household Employer’s Tax Guide.
This publication will help you decide wether you have a household employee and if you do, whether you need to pay federal employment taxes (social security tax, Medicare tax, federal unemployment tax and federal income tax withholding). It explains how to figure, pay and report these taxes for your household employee. It also explains what records you need to keep.
Some companies may claim to be a bargain and not fully explain your tax liability. Additionally, these companies may not fully disclose their practice of using independent contractors. This is why we recommend that if you suspect the use independent contractors, then you should consult with your attorney and/or accountant prior to accepting services.
Adultcare Assistance is a different type of company. Every caregiver is our employee and not your responsibility. We give our clients the peace of mind of not having to worry about paying these taxes, filling out these forms or being subjected to related IRS penalties and back taxes.
More information on this topic is provided by the Home Care Association of America Consumer Cost Comparison.
Information contained on this page is for general information purposes only.
Please contact your accountant for advice on your specific situation