How does a family withhold taxes from their babysitter?

Question

A family I may work for withholds taxes from their babysitters. How is this done? Is their anyone federally or locally I can call or check with that can verify that these taxes are being received and not hoarded by the family? What is the time frame requirements for the family to send in my taxes? As tax time approaches will I receive a W-? form or a 1099 form? Will this form come from the govt or the family?

Answer 1

You will receive a W-2, not a 1099. It sounds like this family is doing things right, which unfortunately is unusual - many people who employ babysitters in their homes illegally claim the employee as an independent contractor. They'll most likely deposit your federal taxes monthly - there is some possibility they'll just have to do it quarterly - the IRS will determine the frequency, they don't just get to decide. If there are state taxes involved also, the frequency will depend on the state. You'll get the W-2 at the end of the year from your employer, just like any job - they'll also send a copy to the IRS.

You should get some sort of pay stub each time you are paid. Be sure to keep these in case there are any questions.

I don't know of anywhere you can call to verify that the taxes are being deposited properly, but if the family is going to all the trouble of doing the withholding, they're probably legitimate.

Answer 2

Those are a lot of good questions, of which I can only answer 1.
If they are withholding taxes you would get a W-2 form, if they listed you as an independent contractor resposable for paying your own taxes you would get a 1099

Answer 3

It's best to talk to a Tax Expert, before
You wind up oweing a lot of money.

Answer 4

I would actually contact a C.P.A. or a tax accountant for more information.