Elderly man has been paying a lady for in home care. He also has her living there. He paid her $500 month by check. The lady is a Household Employee and he will have to issue a W-2. So my question is... is the wages on the W-2 going to be just the $500 a month which would be $6000 for the year. Or do you include the housing in the W-2 wages? How is the housing handled? Kind of like a "Nanny" but the care is for an elderly single man. (He refuses to go to a "home" and wants to stay in his own home until he dies).
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In my opinion you would treat it like a live in Nanny. W2 household employee.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR -
Just a quick search - IRS pub 15B- See section 119(a) - exclusion from income the value of meals and lodging furnished by the employer to a nanny or household worker provided the following conditions are met:
**Meals and lodging must be furnished on premises (family home)
**Must be furnished for the employer's convenience (eg she cannot leave the home for lunch when on duty) and
**For lodging only, employees must be required to accept the lodging as a condition of employment.
Hope this assists you
SandyComment
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If Social Security and Medicare are not taken out of the checks, you will need to adjust the gross income on the W-2 and so forth.
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Employer can pay both parts of FICA when you complete Schedule H. Then you have to include employee's portion as wages the following year.Comment
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I think you are correct. Sorry 'bout that.Comment
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