Question on Paying a Sub

[tenderhearts]

I want to have someone on call to sub for me on the occasions of appointments. Do I have to hire as an employee and deduct taxes or can I just pay her? and what do I do at end of year? Thanks

[TomCopeland]

Substitutes

I want to have someone on call to sub for me on the occasions of appointments. Do I have to hire as an employee and deduct taxes or can I just pay her? and what do I do at end of year? Thanks

You must treat her as an employee unless she is in the business of providing substitute care for other providers. Withhold Social Security/Medicare taxes and file Form 944, W-2 and W-3 at the end of the year. Check with your state department of labor to see if you must pay state unemployment tax or purchase workers compensation insurance.

[tenderhearts]

Ok thanks, that sounds complicated and expensive? Hmm maybe I don't want to do this now.

[tenderhearts]

Ok thanks, that sounds complicated and expensive? Hmm maybe I don't want to do this now.

Actually she is in the business of substituting for other providers schools and centers, that is her business, job. So that does mean I don't have to do the w-2 and all that right? sorry I got confused.

[TomCopeland]

Substitute

Actually she is in the business of substituting for other providers schools and centers, that is her business, job. So that does mean I don't have to do the w-2 and all that right? sorry I got confused.

Because she is in the business of providing substitute care, she is an independent contractor and you don't need to pay any payroll taxes. Issue her a Form 1099 if you pay her more than $600 in a year. She should have her own EIN number and ideally have a business name.