Are you ahousehold employer?
Five quick questions to see whether paying your parent's caregiver makes you a household employer in the eyes of the IRS — and which federal taxes may apply. General information, not tax advice.
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A few questions
Rough answers are fine. Nothing is saved.
Do you (or your parent) pay someone to provide care in a private home?
Do you set the caregiver’s schedule and how the work gets done? (Choose “No” if an agency controls the worker.)
Is that caregiver your spouse, your child under 21, or your parent?
What it suggests
You’re likely a household employer.
Based on your answers, the IRS would likely treat this as household employment, with federal taxes to handle. KinPayroll sets it up correctly — your parent as the employer — and handles the forms and deadlines. Confirm the specifics with your tax advisor.
- • Social Security & Medicare taxes likely apply — you expect to pay a caregiver $3,000 or more this year.
- • Federal unemployment tax (FUTA) likely applies — household wages reach $1,000+ in a single quarter.
This is general information, not tax advice. It covers federal rules only — not state income tax or state unemployment (SUTA), which vary by state. Confirm your situation with a qualified tax advisor.
This is general information, not tax advice. It covers federal rules only — not state income tax or state unemployment (SUTA), which vary by state. Confirm your situation with a qualified tax advisor.
Know where you stand? Take the next step.
Run the calculator to estimate the cost and the deduction, or start free to set it up correctly.
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