Are you ahousehold employer?
Quick fact questions about who controls the caregiver's work — we work out whether the IRS would call you a household employer, and which federal taxes may apply. General information, not tax advice.
No account neededNothing is savedFederal rules only
A few questions
Just the facts — rough answers are fine. Nothing is saved.
Do you (or your parent) pay someone to provide care in a private home?
Was the caregiver placed by a home care agency that pays them and controls their work?
Who sets the caregiver's schedule — your family, or the caregiver?
Who decides how the care is done day to day — your family, or the caregiver?
Does the caregiver run their own care business — several clients, their own supplies?
Is that caregiver your spouse, your child under 21, or your parent?
What it suggests
You’re likely a household employer.
W-2, not 1099.
Your family controls the caregiver's work, so the IRS would treat them as your household employee — that means a W-2 at year-end, never a 1099. Issuing a 1099 to a household employee is misclassification, and it's the mistake families most often make here. KinPayroll sets this 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.
Free accountNo credit cardFederal tax estimates for all 50 states