QUESTION DETAIL
Related User
Votes
We pay an in-home private caregiver and are reimbursed by an insurance company that does not pay for her employment taxes. The caregiver provides assistance for activities of daily living. Do we have to submit a 1099 (or other IRS form) to report this transaction?
ANSWER
The BIDaWIZ Team's Answer:
Since she is a private practitioner, the IRS will likely consider her to be an employee as opposed to an independent contractor. If that is the case, then her pay will be subject to employment taxes and reported at the end of the year with a W-2 Form as Per IRS publication 926.