Announcement

Collapse
No announcement yet.

Taxes for home health aides do-it-yourself or payroll services

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Taxes for home health aides do-it-yourself or payroll services

    How are you handling taxes on your PCAs?

    My PCA costs are about to go up significantly and I want to make sure to follow the tax code for 4-6 aides. I'm in Florida and I know I can avoid federal withholding if I'm okay with paying their half of FICA at year end. So in that case I would pay both halves, but save the trouble of withholding. This is what I've done before, but as costs were lower, their half was not very much. As for state taxes, I lived in a state with state income tax, so any state taxes were handled through that. I had to make quarterly estimated income tax payments for myself.

    In any case, I'm assuming now the only way to handle this will be to withhold.
    How many people are using payroll services and what is a fair amount for them to charge. I have some that want to charge based on the number of employees. I have others that want to charge a percentage of total wages.

    How many people are doing this on their own? Are you using something like TurboTax.

    I'd much rather do it on my own, but I really don't have any idea where to start. I've done a lot of reading online and eventually I wind up confused. I think I'm wrapped up in the process, meaning getting withholding started, figuring out what percentage to withhold, communicating to them how much I withheld for each tax, FICA, FUTA, SUTA etc., and then actually remitting the amounts at the proper time into the proper place.

    Anyway, I'd like to hear how people are making this work whether they're using a payroll service or handling it themselves.
    Thank you



    #2
    I have been using nannypay software for a few years. It figures out all the payroll and tax stuff. The version for up to 10 employees costs about $200. To me, it is worth it. You can try it free for 30 days to check it out.

    https://nannypay.com/

    Comment


      #3
      Thanks for the tip. I'll check it out!

      Comment


        #4
        Originally posted by wchair View Post
        How are you handling taxes on your PCAs?

        My PCA costs are about to go up significantly and I want to make sure to follow the tax code for 4-6 aides. I'm in Florida and I know I can avoid federal withholding if I'm okay with paying their half of FICA at year end. So in that case I would pay both halves, but save the trouble of withholding. This is what I've done before, but as costs were lower, their half was not very much. As for state taxes, I lived in a state with state income tax, so any state taxes were handled through that. I had to make quarterly estimated income tax payments for myself.

        In any case, I'm assuming now the only way to handle this will be to withhold.
        How many people are using payroll services and what is a fair amount for them to charge. I have some that want to charge based on the number of employees. I have others that want to charge a percentage of total wages.

        How many people are doing this on their own? Are you using something like TurboTax.

        I'd much rather do it on my own, but I really don't have any idea where to start. I've done a lot of reading online and eventually I wind up confused. I think I'm wrapped up in the process, meaning getting withholding started, figuring out what percentage to withhold, communicating to them how much I withheld for each tax, FICA, FUTA, SUTA etc., and then actually remitting the amounts at the proper time into the proper place.

        Anyway, I'd like to hear how people are making this work whether they're using a payroll service or handling it themselves.
        Thank you

        not on ur aides but you have files for property tax exemption savd me 2800 a year

        Comment


        • SCI-Nurse
          SCI-Nurse commented
          Editing a comment
          This is only in existence in a few states. (KLD)

        #5
        I've got one employee on the books and three off the books. For the employee that is on the books it is manageable just using Excel to track the pertinent data. Then again, I am an advanced user of Excel and can use it properly to do so. However, there's no way I can use Excel to easily manage all four on the books. It would require a lot more time and care. If I was going to do several employees on the books I would get payroll management software. There are several.

        If money is not an issue and you want to avoid any headache, then by all means hire a payroll service.

        The advantage to having everybody on the books is that you can have a very substantial healthcare related tax deduction.

        And don't forget, in addition to the employer FICA contribution it's not just city (possibly), state, and federal payroll taxes that must be paid, it is also Worker's Compensation and disability insurance. It doesn't take much in payroll to trigger mandatory coverage and more importantly, again if money is not so much an issue, it's nice to have everybody protected, most importantly yourself (legally) against an employee who gets injured on the job or disabled off the job.

        The cost of any potential legal action against you by a disgruntled employee following a real or phony injury can dwarf the cost of such coverage.

        And don't forget, in addition to the employer FICA contribution it's not just city (possibly), state, and federal payroll taxes that must be paid, it is also Worker's Compensation and disability insurance. It doesn't take much in payroll to trigger mandatory coverage and more importantly, again if money is not so much an issue, it's nice to have everybody protected, most importantly yourself (legally) against an employee who gets injured on the job or disabled off the job.

        The cost of any potential legal action against you by a disgruntled employee following a real or phony injury can dwarf the cost of such coverage.

        Comment

        Working...
        X