Unemployment and Daycare

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  • Unregistered

    Unemployment and Daycare

    So come to find out my assistant slipped yesterday.... She's been working with me since October and has been filing unemployement from her last job since July. I've explained this is not a good idea, however she does get paid under the table but also gets paid for one child through the state. Won't the unemployment find out about this when she files her taxes. I'm just really worried about her?! What do I tell her?
  • Blackcat31
    • Oct 2010
    • 36124

    #2
    Originally posted by Unregistered
    So come to find out my assistant slipped yesterday.... She's been working with me since October and has been filing unemployement from her last job since July. I've explained this is not a good idea, however she does get paid under the table but also gets paid for one child through the state. Won't the unemployment find out about this when she files her taxes. I'm just really worried about her?! What do I tell her?
    I'd be more concerned about the IRS finding out you are paying an employee under the table.

    HOW she choses to be dishonest with these programs, will be HER issue but YOU should be paying her as an employee, which means payroll taxes etc...

    Comment

    • frugalmama4
      Daycare.com Member
      • Jan 2012
      • 470

      #3
      GM, I'm sure Tom will have a answer for you.

      But I would bet to say the IRS will not now she's working for you if you are not paying her "on the table" as far as the state paying her for one child...is this child registered under your daycare? If so the funds/check are coming in your name not hers correct??

      My advice,

      I would go by the book and start paying her on the table taking out taxes etc.

      Good Luck!!

      Comment

      • TomCopeland
        Business Author/Trainer
        • Jun 2010
        • 3062

        #4
        assistant

        Originally posted by Unregistered
        So come to find out my assistant slipped yesterday.... She's been working with me since October and has been filing unemployement from her last job since July. I've explained this is not a good idea, however she does get paid under the table but also gets paid for one child through the state. Won't the unemployment find out about this when she files her taxes. I'm just really worried about her?! What do I tell her?
        Was your assistant injured? If so, she's entitled to get her medical expenses covered by workers compensation insurance. However, if you don't have workers compensation insurance you can get into trouble and will probably be forced to pay the assistant's medical bills, plus penalties.

        The unemployment office won't find out that she is employed when your assistant files her taxes. They don't check IRS records for this. The fact that you aren't withholding social security/medicare taxes and are not paying state and federal unemployment taxes can get you into trouble. I would strongly recommend to start treating her properly as an employee. See my article on this: http://www.tomcopelandblog.com/2011/...-employee.html
        http://www.tomcopelandblog.com

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