Pay Caregiver Gross or Net Due?

by Fredricka
(Redlands, CA)

I have a caregiver who was not paid by her employer due to my having a share of cost of $600 month...news to me! Her total net is less than $300-$400 month determined by hours worked for me.


Based on her pay slip I need to know if it is fair to both of us for me to pay her the gross amount or net. Would not the gross amount be better for her?
It is my responsibility to pay her if they don't.

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Pay The Caregiver Gross
by: Best Business Payroll

This is a highly unusual situation in our experience--typically the agency pays the full amount and if you are responsible for a portion you would reimburse the agency for the amount you own. Or the caregiver is a 1099 (independent contractor) and is responsible for paying all taxes herself.

Since YOU do not want to get into figuring out payroll taxes and sending the appropriate amounts to the state and federal governments, you should pay your caregiver gross. It is then her responsibility to pay the appropriate taxes on this income, not yours.

Having said that, your caregiver should either plan to set aside money each pay period for those taxes (and may be required to pay estimated quarterly taxes), or perhaps she should ask the agency to take out more money in taxes to offset what she will owe.

Since we are a little unclear on the situation, we would advise you to contact the agency in charge of this program to give them all the relevant information so they can give you a definitive response.

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