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Pregnancy for a Home Daycare Provider
I have recently found out that I am pregnant and going on my second year of doing daycare. I have a few questions on my backup for when I have the child. I have one backup person and another grandparent of a child that I care for that was willing to assist in trade for not paying daycare for a week. I will still be here but just upstairs resting. I was only going to be out for two weeks because of the cost of not taking care of the children being I only have a small group. Would there be a problem with taxes doing a trade moreso and is there anything that I am not thinking out around this?
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If you have someone care for children in exchange for getting free care, this is a barter situation. As such, you would need to treat it as if money changed hands. That means you would have to report as income the amount you would have received. And you must treat the person as if you paid her. That means you must pay payroll taxes (social security, state unemployment taxes - if any). You may also be required to get workers compensation (check with your state on this).
I wish the answer was different! But, whether you barter or pay the person, you must treat them as your employee, even if it's only for two weeks.
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