To further help providers that also have to have a contract and handbook for staff, resource samples have been gathered here. Be sure to follow employee requirements covered under the current Licensing Rule.
When you hire someone to work in your business you must treat the person as your employee (with few exceptions). Some providers try to treat these helpers as independent contractors, but that is not correct. You must pay Social Security taxes on the wages earned by your employee no matter how few hours your employee works for you in a year. You will find a detailed discussion of federal payroll tax issues facing employers in the Redleaf Family Child Care Tax Workbook and Organizer that is updated yearly. This continues to be a reliable resource regarding taxes for family child care providers. As different states have different rules it is always recommended to check with your state’s department of revenue and/or labor.
Key points from NAFCC section on Employees:
Although the taxes due on hiring a part-time employee may be small (about $8 in federal taxes for every $100 of salary), providers should be aware that the bigger issue to them is the risk of an employee becoming injured on the job or being accused of child abuse. To protect themselves in these situations providers should make sure that they comply with state workers compensation insurance laws, and have business liability insurance that covers their employees.
Once you have resolved the tax and insurance issues involved in hiring an employee, here is a checklist of other items you should review.
Before You Hire:
- Ask your insurance agent whether your business liability policy provides coverage for child abuse by all your employees or unpaid workers.
- Contact your licensor and ask if there are any state regulations about the qualifications of the workers you hire. Your state may also require background checks.
- Check with your state attorney general’s office for guidelines on hiring and firing employees (illegal discrimination).
- Find out if you are subject to any deed restrictions, homeowners association covenants, or zoning laws that might restrict your right to hire employees.
- Carefully screen potential employees (criminal background check, credit check, past work references, previous co-workers references, education credentials)
Tom Copeland’s post: Is Your Employee Contract “At Will”?
All needed federal tax forms can be downloaded from http://www.irs.gov. You will need to check with the state for necessary forms specific to Maine.
- Form SS-4
- Form I-9
- Form W-4
- Form 941 or 944
- Form 940
- Form W-2
- Form W-3
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