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Attendant Pay

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  • Attendant Pay

    I have been paying my attendants cash for a long time and want to know what I need to do or who to contact if I want to start paying their taxes so that I can report these expenses on my taxes at the end of the year. Any advice will be appreciated.

  • #2
    Hey, Tim,

    I would suggest getting a good CPA to help you get set up. They have all the forms and tax tables, etc. You do realize you'll also be paying employer shares of taxes? It's a hassle, but we do it because we just don't want to take a chance of an audit. We are also firm believers in what goes around, comes around! Uh,,, can you say Enron?!

    Tough times don't last - tough people do.


    • #3
      Employee vs Subcontractor

      Marmalady is not quite right when it comes to being an employer. I spent some years in the tax field so I know a bit about this area.

      If your attendants are a medical necessity you can issue a 1099 MISC to your attendants for the money you have paid them IF you have their social security numbers and IF you have receipts signed by them ( it would be best if you paid by check [img]/forum/images/smilies/wink.gif[/img] ). It will also be a good idea to have your doctor give you a prescription for an attendant. Keep all this documentation with your tax records in case you are ever audited. All the IRS will want to see is that you paid for the service and to whom.

      On a side note, some PCAs work because they think they will not have to pay taxes on their fees. If your attendants balk at giving you their social security numbers or complain about getting the 1099 you can bet they will be "busy" the next time you call them. You may want to weigh this information against your desire to claim the deduction.

      "And so it begins."
      "And so it begins."


      • #4
        Other responsibilities

        Keep in mind that you also should be paying Social Security taxes, and in most states you are also liable for worker's comp....never know if you might want to run for President, etc.!!!

        Here is a good resource that lists all these types of responsibilities. Many of our clients use a book-keeper both to pay their PCAs and to be sure that all the necessary forms are filed on time. This is not very expensive, and takes the load off of you.

        PCA manual


        • #5
          I do most all of it myself. There are lots of payroll software packages that will do it for you. I personally do it myself and it's pretty simple. The following web site has everything you need and is a joint collaboration between social security and the IRS. Do a search for household employers once you get on the site. There is a complete document for household employers and it will take you step by step. Here is the link: