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my mom moved in with us this year - we have a home helper who signed a 1099 - where do we send it?? the irs website isn't helpful and the automated line isn't either - advice??

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Tim, FEIN is Federal Employer Identification Number.   Companies and Trusts all need to have them, issued by the IRS.   This might be of some help in understanding this aspect of being a small employer:

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

These info sections might be of help as well:

https://www.irs.gov/businesses/small-businesses-self-employed/online-ein-frequently-asked-questions

https://www.irs.gov/businesses/small-businesses-self-employed/online-learning-and-educational-products

AARP has trained people to work in the field to help individuals with their personal taxes; it's possible since AARP includes caregiving as one of its priorities that it may have someone trained in small business taxing and reporting.  It's worth a try.  

You should discuss any insurance issues with your insurance agent.  Mine told me that in Michigan, small employers hiring as you're doing need to buy commercial policies for comp and liability issues.    A few years ago, the cost was $750 to $1000 annually.  Friends of mine who are small business owners advised me against this, including b/c comp policies do rise in premiums on an annual basis, and b/c it's costly, especially to a homeowner.

I don't like to "throw a monkey wrench" into your plans, but better that you be prepared for the costs now than be surprised later.  

Also,  FICA is deducted from the employee's paycheck.   You withhold it in each check (just as your employer would for you).   Years ago funds held back were sent quarterly to the IRS, but with so much being done online the IRS may have created different provisions for reporting and submitting funds.  

Do you have an accountant?   If not, a small business specialist might not be a bad idea just to help you get started, as well as develop a good grasp of what role you play, your state and federal tax obligations, etc.
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FloridaDD Dec 2019
I think if you have a homeowner policy, call your agent, I am covered for one household employee for liability.  WC very cheap in my state. google workmans comp in your state, and they may have a state program.
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Please also check with your auto insurance as to coverage for the caregiver if they are driving your elders car. Your mom may need to get a rider for them that’s attached to elders existing policy.

they are not a member of the household, so should there be an accident and a claim filed and insurance discovers they are an employee, you run a pretty good probability that the claim will be denied.

years ago my mom had rotor cuff surgery while she was still living in her home & she hired in-home caregiver from an agency (home instead). Agency did NOT allow them to use their personal car to take mom to doctors appointments, PT or even go grocery shopping. All need to be done via my moms car. State Farm was ok with it as it was short term - like less than 90 days- and the caregiver(S) were employed by the agency. But had mom on her own hired a caregiver & FICA/W-9/I-9 them, she would have needed a rider.
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Thanks - I thought the home helper is considered a contractor and she signs the 1099 - maybe I have the form name wrong - it's a w9 she should sign/send then?

What is the 1096 form and what does it do??
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I just checked - yes, my home helper signed the W9 not 1099 :) but I don't know what to do with it and there's no instruction on where I send it

#newbie
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Hi

For federal taxes, look at the instructions for Schedule H, which deal with household employees.   https://www.irs.gov/pub/irs-pdf/i1040sh.pdf

You will also have state filings, if your state has an income tax.

You may also need to pay into state unemployment and workmans comp.  

Check with your local senior center, and see if they have volunteers who can help with this.  At many libraries or senior centers they have volunteers who are retired CPAs who can help.

I think what the pp meant by employer match was NOT 401K, no one I know has a qualified plan set up for one employee, but the FICA paid for by the employer, in addition to the employee piece.  The link discusses this.
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timjwrobel66 Dec 2019
Thanks for this info - I've printed out the form. So I have to pay for FICA? How do I know how much that is?? Seems cost prohibitive for someone visiting with my mom for less than 20 hours a week :(

I'll look for some local resources in my town - I still don't know if the helper files a w9 or schedule H. Thanks VERY much for sharing this!
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