Updated April 5th, 2016

ARTICLES AND LINKS TO RESOURCES 

FOR PEOPLE WITH ALZHEIMER'S, THEIR LOVED ONES AND CAREGIVERS 

Law Office of D. Victor Pellegrino
2627 Genesee Street, Utica, New York, 13501
Phone: (315) 733-0417 Fax: (315) 792-8075

Member: National Academy of Elder Law Attorneys

Elder Law, Trust and Estate and Tax Sections of the New York State Bar Association

Follow me at www.Twitter.com/DVICTORPELLEGRI

I am very honored to have been classified as a prominent person in the area of Medicaid on Twitter. :)

check out this link: http://wefollow.com/interest/medicaid

"Protecting The Assets of Seniors and Their Families For Thirty Eight Years"


 

<> WHAT IS ALZHEIMERS?

           http://www.youtube.com/watch?v=9Wv9jrk-gXc video

           http://www.nia.nih.gov/alzheimers/alzheimers-disease-video

           http://www.youtube.com/watch?v=7-P9lbTJ9Hw video

           http://www.youtube.com/watch?v=oTEbq4h-kvQ video

           http://www.youtube.com/watch?v=kr609-qy8Z8 video

           http://www.youtube.com/watch?v=BXnZt5VMjZY video

           http://www.alz.org/alzheimers_disease_what_is_alzheimers.asp

           http://www.alz.org/alzheimers_disease_stages_of_alzheimers.asp?gclid=CNq23YLHp70CFcx9OgodfHAA9w

           http://www.alzheimersweekly.com/2013/01/7-stages-of-alzheimers.html

           http://www.nia.nih.gov/alzheimers/topics/alzheimers-basics

           http://www.medicalnewstoday.com/articles/159442.php

           http://www.ninds.nih.gov/disorders/alzheimersdisease/alzheimersdisease.htm

           http://www.nia.nih.gov/alzheimers/publication/alzheimers-disease-fact-sheet

           http://www.webmd.com/alzheimers/guide/alzheimers-basics

           http://www.alz.org/alzheimers_disease_10_signs_of_alzheimers.asp


<> INFORMATION FOR FAMILY AND CAREGIVERS

     <>  Video Series

            http://www.helpforalzheimersfamilies.com/family-caregiver-alzheimers-dementia-training/training-video-series/understanding-alzheimers-dementia-video/

     <> Caregiver Guides

       http://www.helpguide.org/elder/alzheimers_disease_dementia_support_caregiver.htm

       http://www.medicinenet.com/alzheimers_disease_causes_stages_and_symptoms/article.htm  

  

      <> Advance Directives

           http://www.youtube.com/watch?v=Bar0qZTUGdw&feature=youtu.be Video

     <> Caregiver Stress

           http://www.nia.nih.gov/alzheimers/topics/caregiving 

           http://www.alz.org/care/alzheimers-dementia-caregiver-stress-burnout.asp

           http://www.alz.org/care/alzheimers-dementia-stress-check.asp

           http://www.caregiverstress.com/dementia-alzheimers-disease/

           http://www.mayoclinic.com/health/alzheimers/AZ00028/?pubDate=04/04/2013

     <> Financial Planning

            http://www.medicinenet.com/financial_planning_in_alzheimers_disease/article.htm

     <> Incontinence

        http://www.alz.org/care/alzheimers-dementia-incontinence.asp 

        http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=136

        http://alzheimers.about.com/od/practicalcare/a/fecal_causes.htm

        http://www.all-about-alzheimers-disease.com/Incontinence.html

        http://ezinearticles.com/?Alzheimers-Disease-and-Incontinence-(Bladder-or-Bowel-Control)&id=6541139

     <> Bathing Issues

          http://www.alz.org/care/alzheimers-dementia-bathing.asp

          http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=155

          http://caregiverrelief.wordpress.com/2010/01/02/alzheimers-problems-wb-n/

          http://alzheimers.about.com/od/practicalcare/a/Wash_Bath.htm

          http://www.caring.com/articles/dementia-alzheimers-hygiene-problems

          http://www.veteranstoday.com/2009/05/29/caregiver-tips-for-loved-ones-with-dementia-alzheimers-bathing-issues/

     <> Drugs

            http://www.drugs.com/drug_interactions.php

            http://www.nia.nih.gov/alzheimers/publication/alzheimers-disease-medications-fact-sheet

            http://www.livestrong.com/article/102459-alzheimers-medications-side-effects/

            http://www.alz.org/research/science/alzheimers_disease_treatments.asp#how

            http://www.alz.org/alzheimers_disease_standard_prescriptions.asp

            http://www.mayoclinic.com/health/alzheimers/AZ00015

      <> Sundowning/Night Terrors

          http://www.webmd.com/alzheimers/guide/sundowning-causes-symptoms-treatments

          http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3246134/

          http://syndrome.org/sundown-syndrome/

          http://www.alz.org/care/alzheimers-dementia-sleep-issues-sundowning.asp

          http://voices.yahoo.com/treating-sundowners-syndrome-top-10-behavior-management-1987341.html

          http://www.everydayhealth.com/alzheimers/sundowners-syndrome.aspx

         

     <> Shadowing

           http://www.alznyc.org/caregivers/sundowning.asp

           http://www.alzheimersreadingroom.com/2011/02/alzheimers-me-and-my-shadowing.html

           http://alzheimers.about.com/od/behaviormanagement/a/Shadowing-And-Alzheimer-S.htm

            http://free-alzheimers-support.com/wordpress/2010/06/what-is-shadowing/

          

     <> Driving Issues

           http://www.mayoclinic.com/health/alzheimers/HO00046

           http://www.alz.org/care/alzheimers-dementia-and-driving.asp

          http://www.alz.org/national/documents/topicsheet_driving.pdf

     <> Siblng Conflicts

           http://www.alzheimersreadingroom.com/2013/03/sibling-conflicts-and-caregiving.html

           http://alzheimers.about.com/lw/Health-Medicine/Conditions-and-diseases/Sibling-Disputes-Related-to-Alzheimers-Disease.htm

           http://www.caring.com/articles/sibling-relationships-strained

           http://www.caringformyparents.org/tips-for-managing-family-conflict-while-caring-for-an-aging-parent-with-alzheimers/

      <> Dressing

          http://www.alz.org/care/alzheimers-dementia-dressing.asp

<> WHAT IS FRONTOTEMPORAL DEMENTIA?

           http://www.mayoclinic.com/health/frontotemporal-dementia/DS00874

           http://www.ninds.nih.gov/disorders/picks/picks.htm

           http://www.alz.org/dementia/fronto-temporal-dementia-ftd-symptoms.asp

           http://www.theaftd.org/

           http://www.mayoclinic.com/health/frontotemporal-dementia/DS00874/DSECTION=symptoms

           http://www.ncbi.nlm.nih.gov/pubmedhealth/PMH0001752/

WHAT IS VASCULAR DEMENTIA?

           http://www.alz.org/dementia/vascular-dementia-symptoms.asp

           http://www.mayoclinic.com/health/vascular-dementia/DS00934

           http://www.webmd.com/stroke/vascular-dementia

           http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=161

           http://memory.ucsf.edu/education/diseases/vascular

WHAT IS LEWY BODIES DEMENTIA?

           http://www.lbda.org/node/7

CRITICAL INFORMATION YOU MUST KNOW ABOUT YOUR LEGAL RESPONSIBILITIES, CIVIL AND CRIMINAL LIABILITIES, FINES AND PENALTIES UNDER NEW YORK LAW

WHEN YOU HIRE PRIVATE HOME HEALTH CARE AIDES

TO CARE FOR YOUR PARENTS OR SPOUSE

Many of my clients hire home health care aides to care for their parents, without giving a thought as to what their legal responsibilities are or what their exposure is to civil and criminal laws, fines and penalties.

Many times I have a client tell me  

“My mom loves this home care aide and does not want to lose her or him.”

            “The aide insists on being paid off the books.”

            “If I have to pay the aide on the books he/she will quit.”

            “If I have to pay the aide on the books he/she will charge more.”

“We consider the aide like family and I can’t imagine him or her ever suing me or mom if he/she got injured or we had to let her go.”

“Everyone I know pays their home health care aides off the books!”

The above notwithstanding, it is no less than foolish to ignore the law and pay an employee “off the books.” It may be “penny wise”, but it is clearly “pound foolish.” My advice is DON’T DO IT, FOLLOW THE LAW!!!

            Now why do I say this? Well, if you don’t have workman’s compensation insurance when you are supposed to, there is a $2,000 penalty for every 10 day period you don’t have the insurance! There are 30/31 days in a given month. If your home health care aide gets hurt lifting mom or dad out of bed, you are the insurer and become liable for all of their medical bills for the rest of their life!  If they are disabled, you are required to pay what they would have gotten for disability benefits. Do the math! Do I have your attention yet?   

The purpose of this letter is to discuss the obligations of a child who hires home health care aides to care for their parents. The issues discussed also apply to a spouse who hires health care aides to care for their spouse and to a Power of Attorney, Trustee or anyone else the law defines as an “Employer.”

The information set forth here for you is not optional! It is mandatory that you become aware of  what the law requires you to do when you hire a caregiver for your parent or spouse and the penalties for your failure to comply with the law.

Question 1: WHAT IS THE LEGAL DEFINITION OF THE TERM “EMPLOYER” AND

WHAT DOES AN EMPLOYER HAVE TO DO?

                        The term “employer” means an individual or entity which pays an individual to provide services to an individual (in the home care context). The term “employer” applies to both to an individual or entity who pays employees and /or pays independent contractors.

                        An “employee” is an individual who gets paid by an employer for providing services and who is not an independent contractor.

                        In general, an independent contractor (1) has no set hours, (2) is free from the direction, supervision and control of the employer and (3) is subject to profit and loss (rather than a guaranteed payment) for an undertaking, pursuant to an agreement or contract.  Usually, a home health aide is an employee, not an independent contractor.

The Internal Revenue Service (“IRS”) is the Federal agency which sets policy with respect to which employers and workers are subject to withholding requirements for Federal Income Tax, Social Security, Medicare and Federal Unemployment.

The New York State Department of Taxation is the state agency which sets policy with respect to which employers and workers are subject to withholding for state Income Tax. See EXHIBIT A, attached.        

The New York State Unemployment Insurance Board (“NYSUIB”) sets policy concerning what employers and employees are covered under the New York State Unemployment Insurance Law and which employers are required to pay the New York State Unemployment Tax. See The Employers Guide To Unemployment Insurance, Wage Reporting and Withholding Tax NYS-50 found at:

http://www.tax.ny.gov/pdf/publications/withholding/nys50.pdf

The New York State Workers’ Compensation Board (“WCB”) sets policy for and administers the Workers’ Compensation system in New York State and the disability coverage required by statute. The Workers’ compensation board also determines who is an employer and whether a worker is an employee for the purposes of Workers compensation and statutory disability.  See the New York State Worker’s Compensation Board Employer’s Handbook found at:

http://www.wcb.ny.gov/content/main/Employers/EmployerHandbook.pdf

Unfortunately, the definitions of employer, employee, independent contractor and domestic worker (including home health aides) are not uniform across these government agencies. These nuanced differences make it more difficult to know what to do with each agency. In general, my advice is that due to the major risks and costs involved in making the wrong decision, if there is any possible question, err on the side of the existence of an employer-employee relationship. In general, the cost of initial compliance (paying the employer’s share of Social Security, obtaining Workers’ compensation and New York State Disability, paying Unemployment Tax, and doing the required income tax withholding, etc.) is less than the cost to deal with than the failure to classify a worker as an employee asserted by one agency, let alone three or four.

Question 2:WHAT CAN I DO TO DEFINE WHO IS THE EMPLOYER?

The “Employer” should be clearly defined. The best way to do this is for the employer to obtain a separate Employee Identification Number, (Form SS-4) from the IRS.  In general, the individual receiving the home health care services will be the employer; however, there are other individuals or entities which a government agency can find to be an employer, particularly in the home health aide situation. For example, an adult child who “arranges” for a non-agency privately paid home health aide for a parent could be deemed the employer by the Workers’ Compensation Board and the State Unemployment Insurance board if the recipient of care has not obtained an Employer Identification Number or has no Employer ID# for Workers. Comp and Unemployment Insurance.  

Question 3:WHAT IF I AM PAYING AN AGENCY FOR PROVIDING CAREGIVER

SERVICES?

 

If you are paying an agency for providing aide services, you should confirm that the

Agency providing the aide is furnishing Workers’ Compensation coverage, paying unemployment and withholding and filing taxes. If the agency is doing these things, then you need do nothing because the agency is the employer.  However, should you hire a non-agency aide in the future, remember the rules set forth in this letter will then apply to you. If you are directly paying a home care agency, then the agency is probably the employer. Caution: There are a number of aide placement agencies which assist families in finding aides, but which do not employ aides. In general, the aide is paid by the family and the agency receives a fee. Even if the agency is paid directly, and the agency pays the aide, you should still confirm Workers’ Compensation coverage by the agency and obtain a copy of a Certificate of Insurance from the agency.

Question 4: WHAT IS THE DIFFERENCE BETWEEN AN EMPLOYEE AND AN

INDEPENDENT CONTRACTOR?

The line between an employee and an independent contractor is technical, subjective, shifting and many times vague. In general, a worker who receives a set wage is under the control and direction of the employer (whether that control and direction is exercised) and who can be hired and fired is an employee.

In general, an independent contractor has no set hours, is free from the direction and control of the employer and is subject to profit and loss (rather than a guaranteed payment) for an undertaking, pursuant to an agreement/contract.  Thus, as a practical matter, a home health aide will almost always be an employee, not an independent contractor.  This is especially true in the Workers’ compensation arena.

As a policy matter, the taxing authorities, the UIB and the WCB all will tip the scales very strongly toward a finding that a worker is an employee.

Question 5: ASSUMING THE CAREGIVER IS AN EMPLOYEE, WHO SHOULD BE

THE EMPLOYER ?

I recommend that the person receiving the care, your parent, should always be the employer. This gets agents like you under a power of attorney, spouses, children, guardians and trustees out from under personal liability for failure to comply with the obligations of the employer.  

QUESTION 6:WHAT DO I HAVE TO DO IF AN EMPLOYEE IS HIRED?

Please see the very clear and concise explanations in the attachment to this letter and the web sites referred to above. Please pay particular attention to the documents sent by the IRS when an Employer Identification Number is assigned, the New York State Department of Taxation & Finance information (Exhibit A) and the New York State Department of Taxation & Finance Employers Guide to Unemployment Insurance, Wage Reporting and Withholding Tax referred to above.

  In general, an employer has to take the steps outline below. 

The required actions include---

1. Register as an employer with the NYS Dept. of Taxation & Finance and the NYS Unemployment board.

2. Confirm that the potential employee is eligible to work in the U.S.

3. Obtain NYS Workers’ compensation and NYS Disability insurance policies.

4. Retain a payroll service to handle the withholding and tax filings.

            I strongly recommend that employers pay payroll services to make the wage payments and deal with all the withholding and report filing issues.  However, the standard services such as Paychex and ADP are not necessarily able to properly calculate wages due. If there is an error, the service has to deal with it, not the employer or someone acting at the request of the employer.

In terms of obtaining workers Compensation and New York State disability coverage, I recommend that you start by contacting the insurance broker the family uses for its regular insurance needs.  If that approach is unsuccessful, you can go to the New York State Insurance Fund website (www.nysif.com).

Please note that only the number of full-time and part-time employees and total salary are required, not the names or social security numbers of employees.

Question 7: WHAT IF THE CAREGIVER WANTS TO WORK OFF THE BOOKS?

This is a biggggg problem for you!!! Many times a caregiver does not want taxes withheld, or the aide is an individual who is not eligible to work (an undocumented individual). 

            With respect to an eligible worker who does not want taxes, social security, etc., withheld, the following should be required:

1. a separate tax identification number issued to the aide for a business of   providing home care

2. a certificate of workers’ compensation coverage for the business entity;

3. a 1099 agreement; and

4. a requirement to be furnished with copies of tax returns filed by the aide or a letter from the aide’s accountant saying that a Schedule C has been filed with the tax returns and includes the income from the 1099 form provided by the employer.

5. proof that the aide works for other employers

6. proof that the aide has no set hours and

7. is free from your  direction, supervision and control.

            If all these 7 steps are taken, there may be sufficient evidence to support that the aide is an independent contractor, provided that you are not the aide’s only client.

            In my opinion, the cost of litigating this issue with different agencies, the bias of the agencies to find an employee status instead of an independent contractor status, the risk of losing that litigation and the fines and penalties involved if you lose mean that you should really treat your aide as an employee except when the aide is employed by an agency.

            Is that a conservative approach? Yes, but I believe a sound approach and good advice.    

For a potential aide who is not eligible to work, you must be aware that there are federal, civil and criminal penalties for employing undocumented workers.  If you hire an undocumented aide anyway, a workers’ compensation policy must be obtained (see below). All employees, including undocumented employees, must be covered by a workers’ compensation policy. The public policy behind this requirement is to discourage employers from hiring undocumented workers in order to save on the workers’ compensation premium. 

            I know that most of my clients will prefer to hire an aide with whom the recipient care is comfortable and with whom the family is comfortable, irrespective of the issues, such as civil and criminal liability which the family feels is a remote possibility, until they happen to you.

My obligation as your attorney is to advise you of your rights and responsibilities.

            The penalties for failure to comply with providing workers’ compensation and disability coverage, failure to withhold and failure to pay unemployment tax vary from annoying to draconian.

            The minimum wage and overtime pay requirements for home health aides (classified as domestics) are complicated. The federal Fair Labor Standards Act (FLSA) and the NY Domestic Worker Bill of Rights (L 2010 ch 481) must be consulted. The basic rule for non-agency home health aides is that

            1. an hourly wage must be paid for all hours the aide is present in the residence of at the recipient of care;

            2. currently, the minimum wage for the first 40 hours (44 hours if aide is live-in) is $7.25/hr (increases to $8.00/hr on 12/31/2013) and annual increases each of the succeeding two years;

            3. time and a half for all hours over 40 (over 44 if live-in)

            4. 24 consecutive hours off every 7 days unless waived by aide

The bottom line is that the more hours an aide works, the higher the effective hourly (because a higher percentage of the hours are at the overtime rate)..

Question 8: IS TRYING TO SAVE MONEY ON EMPLOYEE COSTS WORTH IT?

            The short answer is no! I advise all clients to treat home health care workers as employees. If a worker is injured on the job, the failure to obtain Workers Comp coverage will result in the employer having to pay all indemnity (weekly and permanency awards), medical bills and significant penalties for failure to have workers comp coverage.

The homeowner’s policy does not cover claims which are properly workers comp claims. A domestic working less than 40 hours per week does not have to be covered by workmen’s compensation, although that worker is probably an employee for other purposes. 

Do you want to deal with numerous aides in order to avoid any aide working more than 40 hours per week (for comp purposes) or 44 hours per week (for overtime purposes)?

            This may surprise you, but sometimes a client does not take my advice.  For this reason, I am including this disclaimer in this letter:

If you are now or in the future privately paying for a home health aide and   you have hired this person privately and not through an agency, I have, with this letter, advised you of your legal obligation to make deductions for Social Security and other payroll taxes, to pay unemployment taxes and to provide workers compensation and NYS disability coverage. I have also advised you that you are at significant financial risk if you do not comply with these obligations. You could also be subject to criminal prosecution.  You should contact an accountant and regular insurance broker to take the necessary steps. 

Please understand that as your attorney, I am not responsible should you or your children, powers of attorney or trustees fail to follow the laws referred to in this letter. Please share this letter with them.

                                                            Warmest personal regards

                                                                                                D. Victor Pellegrino  

                                                                                                                                                           

EXHIBIT A

Hiring Household Help

Tax Bulletin MU-350 (TB-MU-350) Printer-Friendly Version (PDF)

Issue Date: December 31, 2012

Introduction

If you hire household help, such as a housekeeper, babysitter, or caretaker, your responsibilities as a New York State employer may include:

  • registering as a new employer,
  • reporting a newly hired employee,
  • paying unemployment insurance,
  • withholding income taxes, and
  • providing workers’ compensation and disability insurance.

This bulletin summarizes New York State reporting and filing requirements (and certain federal requirements) for household employers. It also provides general information about New York State sales tax requirements when you hire someone to do repair and maintenance services in and around your home.

For additional federal information, see Internal Revenue Service (IRS) Publication 926, Household Employer’s Tax Guide.

Are you a household employer?

You are a household employer if you hire someone to do household work and that worker is your employee.

The worker is your employee if you can control what work is done and how it is done. It does not matter whether the work is full time or part time or whether you hired the worker through an agency or from a list provided by an agency or association. It also does not matter whether you pay the worker on an hourly, daily, or weekly basis, or by the job.

If you cannot control how the work is done, the worker is not your employee. For example:

  • A worker who provides his or her own tools and offers similar services to the general public as part of a regular trade or business is not your employee.
  • A worker who performs child care services for you exclusively in his or her own home is not your employee.
  • If an agency provides the worker and controls what work is done and how it is done, the worker is not your employee.

New employer registration

You must register as an employer with New York State if:

  • you pay cash wages totaling $500 or more in a calendar quarter, or
  • you pay less than $500 cash wages in a calendar quarter and you choose to cover your employee(s) for unemployment insurance, or
  • you and your employee agree to withhold New York State income tax from your employee’s wages.

To register, you must have a federal employer identification number (EIN). To get your federal EIN:

  • apply online with the IRS (www.irs.gov);
  • call the IRS Business and Specialty Tax Line at 1 800 829-4933; or
  • mail or fax federal Form SS-4,Application for Employer Identification Number, to the IRS.

After you have your EIN, register with New York State by:

  • applying online with the New York State Department of Labor (DOL);
  • calling DOL at 1 888 899-8810 or (518) 457-4179; or
  • calling the Tax Department at (518) 485-6654.

Is your employee eligible to work in the United States?

The federal Immigration Reform and Control Act of 1986 requires employers to verify that new employees are eligible to work in the United States (U.S.).

If you employ someone to do work in your home on a regular basis (once a week, for instance), you must maintain records showing that your household employee is eligible to work in the U.S.

Your household employee must complete the United States Citizenship and Immigration Services (USCIS) Form I-9,Employment Eligibility Verification, no later than the first day of work.

However, Form I-9 does not need to be completed for a person:

  • hired before November 7, 1986, and continuously employed by the same employer;
  • providing domestic services in a private household that are sporadic, irregular, or intermittent;
  • providing services as an independent contractor; or
  • providing services under a contract, subcontract, or exchange entered into after November 6, 1986. (In such cases, the contractor is the employer for Form I-9 purposes; for example, a temporary employment agency.)

For more information, visit the USCIS Web site (http://www.uscis.gov/I-9Central) or call USCIS Form I-9 Customer Support at 1 888 464-4218.

Reporting newly hired or rehired employees

Within 20 days of the hiring date, you must report to the Tax Department certain identifying information about each newly hired or rehired household employee working in New York State.

The hiring date is the first day any services are performed for which your employee will be paid wages or other compensation.

You will need the following information:

  • employee name (first, middle initial, last);
  • employee address (street, city, state, and ZIP code);
  • employee social security number;
  • employee hire date;
  • your name;
  • your address (street, city, state, and ZIP code);
  • your employer federal EIN (assigned by IRS); and
  • information about dependent health insurance benefits, and if available, the date the employee qualifies for the benefits.

You can report new hire information online via the Tax Department New Hire Web site at www.nynewhire.com.

If you do not have internet access, you can report the required information by having your employee complete Form IT-2104,Employee’s Withholding Allowance Certificate, or Form IT-2104-E,Certificate of Exemption from Withholding. Submit a completed and legible copy of your employee’s Form IT-2104 or Form IT-2104-E to the Tax Department by one of the following methods:

  • Fax to (518) 320-1080.
  • By U.S. mail to:

NYS TAX DEPARTMENT
NEW HIRE NOTIFICATION
PO BOX 15119
ALBANY NY 12212-5119

NYS TAX DEPARTMENT
NEW HIRE NOTIFICATION
CARTS CONTROL
WA HARRIMAN CAMPUS
ALBANY NY 12212-5119

New York State unemployment insurance and wage reporting

If you pay cash wages totaling $500 or more in a calendar quarter, you must:

  • pay New York State unemployment insurance taxes,
  • report employee wage information, and
  • report the availability of dependent health insurance.

UseForm NYS-45,Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return, and Form NYS-45-ATT,Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return – Attachment, if applicable.

You can file your Form NYS-45 online through the Unemployment Insurance Online Services.

If you pay less than $500 cash wages in a calendar quarter, you may choose to cover your employee(s) for unemployment insurance.

For additional information about New York State unemployment insurance, see Department of Labor Publication IA 318D, Household Employer’s Guide for Unemployment Insurance, or call the Department of Labor at 1 888 899-8810.

For information about federal unemployment taxes, see federal Publication 926.

New York State withholding tax

Withholding income tax (federal or New York State) from wages paid to household employees is voluntary on your part and on your employee’s part.

If you and your employee agree, New York State, New York City, and/or Yonkers income tax, may be withheld. Your employee should complete Form IT-2104,Employee’s Withholding Allowance Certificate.

Use the completed Form IT-2104 to determine the amount of tax to withhold using the following approved withholding tables and methods:

If you withhold New York State, New York City, or Yonkers income tax from your employee’s wages, you must report it quarterly on Form NYS-45.

You are responsible to pay the amount you withhold to the Tax Department, as follows:

  • If you withhold less than $700 during a calendar quarter, pay the tax with your Form NYS-45.
  • If you withhold $700 or more during a calendar quarter, you must pay the tax with Form NYS-1,Return of Tax Withheld, within 3 or 5 business days after the payroll that caused the accumulated tax withheld to equal or exceed $700.

You can file Form NYS-1 and Form NYS-45 and pay the tax you withheld online using the Tax Department’s Online Services. You must create an account before you can Web file.

Benefits of Web file include:

  • direct payment from your bank account,
  • instant confirmation, and
  • increased accuracy.

Information statement for your employee

If you withheld New York State, New York City, or Yonkers income tax from your employee’s wages, you must provide two copies of federal Form W-2, Wage and Tax Statement, to your employee that show the amount of federal wages you paid your employee and the amount of tax withheld for the calendar year.

You must provide the copies to your employee by February 15 of the following year.

If your employee stops working for you before the end of a calendar year, and is not expected to return to work within the calendar year, the statement must be provided no later than 30 days after the last wage payment.

Workers’ compensation and disability insurance

You must provide workers compensation and disability insurance to household employees who work forty or more hours per week for you.

Total hours worked per week include all of the following:

  • time spent at your residence, including sleeping and eating;
  • time spent off premises running errands and performing other duties for you; and 
  • all hours where you require the household employee’s presence.

You are not required to provide workers compensation and disability insurance for individuals you hire to do yard work or casual chores in and about your home on a part time basis. However, coverage is required when you employ a minor to operate power-driven machinery, including a power lawnmower.

While not required to provide workers compensation insurance for a household employee who works less than 40 hours per week, you are encouraged to obtain a voluntary workers’ compensation insurance policy to protect both you and your employee.

For more information, visit the New York State Workers’ Compensation Board Web site (www.wcb.ny.gov) or call 1 877 632-4996.

Metropolitan commuter transportation mobility tax (MCTMT)

The Tax Department has determined that employers of household help are not subject to the MCTMT on wages paid to household employees.

Social security and Medicare

Although you are not required to withhold income tax on wages paid to a household employee, you may be liable for your household employee’s federal social security and Medicare taxes.

For more information, see federal Publication 926.

Sales tax on repair and maintenance service performed in and around your home

Generally, if you hire someone to do repair and maintenance services in and around your home, those services are subject to sales tax. These taxable services include maintaining, servicing, and repairing:

  • tangible personal property (for example, having your furnace serviced or your dishwasher repaired); and
  • real property (for example, roof repairs, lawn maintenance, snowplowing, cleaning services, and trash removal services).

However, services are not subject to sales tax if any one of the following conditions applies:

  • The services are performed by your employee.
  • The service qualified as a capital improvement, and you gave the person performing the service a properly completed Form ST-124,Certificate of Capital Improvement. Examples of capital improvements include the installation of a new furnace or the installation of a new blacktop driveway.
  • The services are performed by a person who does not offer similar services to the general public as part of a regular trade or business.

People or businesses that perform taxable services on your property should charge and collect sales tax when you pay for those services. However, if the person or business does not charge and collect the tax, it is your responsibility to pay the tax directly to the Tax Department.

You can pay the sales tax due by:

  • including the sales tax due on your New York State income tax return, or
  • by filing Form ST-140, Individual Purchaser’s Annual Report of Sales and Use Tax.

For more information, see:

  • TB-ST-913,Use Tax for Individuals (including Estates and Trusts);
  • TB-ST-104,Capital Improvements; and
  • Publication 862, Sales and Use Tax Classification of Capital Improvements and Repairs to Real Property.

Contact us

If you have questions on your responsibilities as a New York State employer, contact our Withholding Tax Information Center at (518) 485-6654.

If you have questions on sales tax requirements for services performed in or around your home, contact our Sales Tax Information Center at (518) 485-2889.

Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.

  

References and other useful information

Tax Law: Sections 171-a, 171-h, 671, 672, 674, 675, 1101(b)(9)

Regulations: Sections 171.7, 541.2(g)

Publications:

Publication NYS-50, Employer's Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
Publication 774, Purchaser's Obligation to Pay Sales and Use Taxes Directly to the Tax Department Questions and Answers
Publication 862, Sales and Use Tax Classification of Capital Improvements and Repairs to Real Property.

Updated: January 3rd, 2013

Available on the web at:

http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/mu/hiring_household_help.htm

 

I HOPE YOU FIND THE ABOVE ARTICLES HELPFUL.

PLEASE CHECK BACK SOON, I AM CONSTANTLY UPDATING THIS PAGE. :)

Warmest personal regards

DICK

D. VICTOR PELLEGRINO

 
Home


Last Updated:  April 5th, 2016
ATTORNEY ADVERTISING

PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME

THE ARTICLES ON THIS WEBSITE ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY AND ARE NOT INTENDED TO PROVIDE LEGAL ADVICE OR CREATE AN ATTORNEY CLIENT RELATIONSHIP.