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The “Nanny Tax” Could be a problem for Home Care Clients

By Stephen Tweed

This week we saw three of President Obama’s potential appointees get into difficulty over not paying taxes. While Timothy Geitner survived the scandal and became Secretary of the Treasury, Tom Daschle and Nancy Killefer were not as fortunate and they withdrew their names form nomination.

The case of Ms Killefer is relevant to us in Private Duty Home Care as it relates to potential clients or families who may consider hiring a caregiver directly, or using a registry that does not withhold taxes. Her problem with unemployment taxes for household help suggests the need for a couple of reminders. If you have a babysitter or home care aide or housekeeper, you’re probably responsible for more than just their Social Security and Medicare taxes. There may also be payments related to unemployment or workers’ compensation coverage.

Here’s a link to an article in the New York Times about “Doing The Right Thing by Paying The Nanny Tax.” This information may be helpful to you when discussing the issue of independent caregivers or caregiver registries.

What do you think about this issue? Give us your comments.

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