IRS and Private Pay Caretakers

It is not uncommon for people to seek out the cheapest way to provide care for themselves or loved ones. Most people are unaware of their legal obligation to the IRS if they choose to employ private pay caretakers. If you pay more than $1600.00 in wages, the employer is required to pay social security and Medicare taxes. The employer will be held responsible for these taxes even if the employee does not properly file their taxes. I have provided this link to the IRS Publication 926 to learn more: http://www.irs.gov/publications/p926/ar02.html