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Thread: Paying our caregiver above the table

  1. #1

    Paying our caregiver above the table

    My husband and I want to pay his mom's companion/caregiver above the table (for many good reasons). We've checked into using an accountant or a payroll service. But we'd like to go with software that we can use at home - it'll probably be the more cost-effective option.

    Has anyone else been in this situation and can recommend a good payroll software product that we should look into? Thanks.

  2. #2
    Interesting - I think I've seen you on another forum I belong to with the same question. Small world if so.

    As for your question, not a clue, but this is a very large forum so somebody should have an idea for you. Good luck!

  3. #3
    You might look at Quicken and Quickbooks. Also check with your state's dept. of revenue.

  4. #4
    We always recommend a book-keeping service. I don't know of any software that will take care of calculating FICA taxes, worker's comp, or income tax with-holding, etc. for an in-home worker that will keep you up to date with the latest changes, etc. The book-keeping service we recommend charges less than $10/month and it is well worth it.


  5. #5
    Can also give a $11000 tax free gift.

  6. #6
    $10 a month sounds about right, and probably going to cost you ask much from any of the major software vendors for their services.

  7. #7
    there's no need to go crazy about it if one can keep a few spreadsheets in excel, though good recordskeeping are essential

    don't forget, salary, and other employer expenses (comp, disability, employer fica) are tax deductible

  8. #8
    I do payroll for my workers. It's really not that difficult. Like crags said theres not really any point in getting accounting software, you can use excel very easily. Also, I'm not sure where you are but the CRA(Canada revenue agency) has a payroll deductions calulator online. All you have to do is type in the gross pay and it will do all the calculations for you. You just have to keep track of how much you'd have to pay for source deductions each month.

  9. #9
    Senior Member
    Join Date
    Aug 2001
    Sonora, CA, USA

    do my own bookkeeping?

    Thanks for all of the fine input. What do you mean by using a bookkeeper service (or am I interpreting this wrong?). Obviously you guys have to bring me up to speed. So far, I have left it up to the caregivers to pay their taxes through their own bookkeeper, but this seems to require too much discipline and they either don't pay their taxes or fall way behind. I live in a rural area where many caregivers get paid under the table without the hassle of paying taxes. That can be hard to compete with. Still, I am sure I can satisfy most of them by taking out the taxes myself. But this appears to be such a pain.

  10. #10
    Junior Member
    Join Date
    Oct 2007
    Va Beach, Va
    It may be more of a pain to pay them above the table. Because in order to collect withholding tax for someone you would have to be their employer.
    In order to do that you would have to be a registered and licensed employer with your state employment commission and the irs. Meaning you would have to register a business,have insurance (liability and unemployment/worker comp),collect withholding tax AND pay that tax on a monthly or quarterly or yearly basis.

    Your best bet may be to ask your accountant or someone with some tax experience to give you a rough estimate of your caregivers tax liability based on an average of what you pay them. Then offer to set that amount aside for them in a personal or extra account until it is time for them to file.
    This way you keep things relatively simple and still have some medical expenses to write off when it comes time for you to file your personal income taxes.

    I hope this helps,because its my first post on this forum.I've kind of been waiting for a good chance to offer some support in an area that I am familiar with besides the usual sci related mess.

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