I am setting up a new client with domestic services payroll only. This is an individual who has care takers. Do I need to this individual up as a sole proprietorship? Also how do I get the approproiate tax schedules for domestic service employees? In other words, what do I have to set in QuickBoooks to get it to recognize that this is a domestic services payroll?
Domestic employees are subject to the same withholding rules as other employees. They are subject to FICA/Medicare, possibly federal and state withholding depending on amount of gross wages. Depending on the state they are also probably subject to state unemployment and also subject to FUTA.
Rather than filing a quarterly 941 or annual 944 however the wages are reported on the individual tax return form 1040 on Schedule H and the withheld federal withholding and social security as well as the matching are paid with the 1040 taxes.
State withholding, depending on the state could be due monthly, quarterly or even annually. State unemployment is probably due quarterly.
Yes, you need to set the employer up as a sole prop. Tax schedules, as MichaelBJ said, are the same for all employers.
A goal of an employment agency is to help you find a job. If you live in the Chicago area and are currently unemployed, underemployed or just down right unhappy with your job an employment agency should be sought out as soon as possible.
Mine is as much a question as it is an answer.
Are his care takers supplied by an outside service and he pays the service or are they actual employees of his?
How old is your client, if he is on medicare he might be better off working through a service, than actually hiring employees, as some of this cost maybe covered by medicare.
If they are truly employees then MichaelBJ is correct in how this should be handled.
