Hiring a live in caregiver is a major decision, and it can be a tough one in any number of situations. Yet, it can also be a life-saving step not just for the person, but for family members and other caregivers who have been struggling to keep up with the person’s needs as well. It’s not cheap under any circumstances, but there’s also a huge difference between basic caregiving services and round-the-clock skilled nursing care. You can easily pay two, three, even four times as much for a live-in private duty nurse, but you may also not have much choice if the person needs that higher level of care for their personal health needs.
That said, most people are at least prepared for the fact that hiring a live in caregiver isn’t cheap. What they may not be prepared for is the accounting, paperwork, and tax documents that come with being an employer of a household worker. This is why you should get customized software support from Advanced Micro Solutions (AMS). Our Forms Filer platform and modular products make it easy to create the files, organize the information, and print or e-file the filing form requirements for when you hire a live in caregiver.
Accounting for Room and Board when Hiring a Live-In Caregiver
One of the most common questions we hear when it comes time to hire a live in caregiver is: What do you do about room and board? Does it count as income? The short answer is that, in most cases, you can provide free room and board without accruing additional payroll/income tax liability, but there are exceptions. Section 119(a) of the tax code for employee meals has the official information, but you can more quickly find the information you need here.
Get Software Support for Household Employer Filings
More likely the bigger headache is going to come just from the normal process of filing W-2s, Sch H Form 1040, withholding employee taxes, complying with any state-based filing requirements, and managing weekly payroll checks. Check out how even a small investment in our software solutions can greatly simplify your payroll and filing form requirements. Any solution from AMS starts with our Forms Filer platform and this core set of software features.
- Data Entry and Form Preparation: Multiple options for entering data include a spreadsheet format or through a screen that resembles the actual form. You can import data from any number of common file types. Free network installation. Payer backup and restore. Modular add-on products.
- Information Printing & Reporting: Reports include tables, worksheets, client letters, recipient lists, and mailing labels. Encrypted PDF files are used for security. SSN/TIN hash totals verify data accuracy. Easy form alignment and large-batch print jobs create automated, error-free printing.
Better yet, you can add our 1099 & W2 Software module for your Sch H Form 1040 filings, while Payroll Software will enable you to calculate tax withholdings, as well as other payroll additions and deductions. What’s more, several customer support resources ensure you never get stuck on a filing form question. To get started, you can download our free accounting software demo, or talk to Sales and Information at (800) 536-1099. And know that you can buy our products online at any time.