Respite worker

[GTS1101]

I have a client who has an autistic child. Through the regional center she receives respiste services. They allow her up to 228 hrs at 10.71 hr. She pays her respite worker which is her sister and the regional center reimburses her for the money paid to her sister. The regional center is saying that no one should have to pay taxes on this money but to seek out a tax advisor. I have never heard of this situation. I would assume my client does not have to pay any taxes as she is the middle man. But I wasn't sure about the sister. I would assume she would pay tax as an independent contractor. Anybody have this problem before or any suggestions or ideas?

Thanks!

GTS1101

[DTS]

Worker

GTS,

Your situation sounds like one I had with a client this past year. Her mom needed help badly, so since my client was the caregiver, the state issued her a W-2 and her mom was the "employer". I'm sure they were reimbursed somehow, but did not have time to ask the client about it.

D

[ChEAr$]

Household employee

since the employer is reimbursed by the state, unlike the preceding case where the state
paid and issued the W2