Clients and candidates alike often ask this question, especially when deciding whether to use a household payroll company such as GTM or Breedlove & Associates. We're glad to give you the simplest answer: YES! If you earn at least $1,600 and/or are working for a client in their home on a consistent basis, then you are considered an employee of that client.
What does this mean for you? That depends. For most families, regardless of income level, child care tax breaks offset most, if not all, of the employer tax costs. For candidates, it is so important to pay on the books because it gives you proof that you are working and paying taxes. If you try to buy a home, a car, or apply for a credit card, it is very important to have proof that you are legally earning that money. Plus, your taxes contribute to your Social Security fund, Medicare taxes, and federal & state withholdings. What if you get laid off, and can't apply for Unemployment because you have no proof of your previous job? Food for thought!
Check out http://gtm.com/index.html and www.breedlove-online.com for more information.
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