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Many people are choosing to hire home health care workers and live at home rather than move to a retirement community, assisted living facility, or even a skilled nursing facility. If you hire a home health care worker, you will have certain tax obligations as a household employer.

First, you will need to apply for a federal employer identification number and register with the state as an employer. You will be responsible for withholding social security tax and medicare tax from your employee’s wages. You will also be required to pay the employer’s match of the social security tax and medicare tax. As an employer, you will also be required to pay federal and state unemployment tax. The state unemployment tax is paid quarterly with an unemployment tax return. The federal taxes (social security, medicare and federal unemployment tax) are reported on your personal income tax return. In addition, you will be required to provide a W-2 to the employee.

Please contact us if you have hired or are considering a home health care worker for yourself or a loved one. We can help you with the required registrations and tax filings.