Originally Posted by manny
My dad wants to pay me money as a caregiver for him. What type of tax requirements does my dad need to file so he can be the employer and I the employee?
In general, yor dad needs to issue you a W2 as an employer; special rules apply to workers performing in-home services for elderly or disabled individuals as caregivers. You, as a caregiver, are typically employee of your dad for whom you provide services because you work in the home of your dad and he has the right to tell you what needs to be done. As you, the caregiver employee , are a family member, the employer, your dad, may not owe employment taxes even though he needs to report your compensation on a Form W-2. However, not in your case, in some cases the caregivers are not employees. In such cases, the caregiver must still report the compensation as income of his or her Form 1040, and may be required to pay self-employment tax on Sch SE depending on the facts and circumstances.