<p>Here’s a specific case,</p>
<p>[E-Newsletter</a> July 2011 ? ?When Hiring Your Own Children, Don’t Count Chores?](<a href=“National Association for Family Child Care – Your Home. Your Profession. Our Commitment.”>National Association for Family Child Care – Your Home. Your Profession. Our Commitment.)</p>
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<p>srystress brings up a good point about doing payroll and unemployment taxes.</p>
<p>If one has no business and hiring someone to do some work, do they have to pay unemployment tax? Doing proper paperwork and using a third party can cost money.</p>
<p>Igloo , good job researching these provisions relating to hiring your kids. </p>
<p>The IRS is not necessarily concerned if you pay your kid to do any type of work if you don’t deduct the payments to the kid, UNLESS someone in this transaction is receiving some kind of govt benefit. Then the IRS might look to see if it is work related to a business as opposed to personal chores you are hiring your kid for. If the kid is an independent contractor and has only one client, namely the parents, that will raise a red flag with the IRS.</p>
<p>Now, I am not necessarily saying the IRS will audit a tax return if they detect this type of activity but they might if this maneuver become widespread enough, and, as a consequence, people are taking larger subsidies than they normally would qualify for .</p>
<p>“UNLESS someone in this transaction is receiving some kind of govt benefit”</p>
<p>Reference please.</p>
<p>Texas, you are right – the parent-employer would also have to pay unemployment tax - see: [Understand</a> the Federal Unemployment Tax Act (FUTA) deduction limit](<a href=“http://payroll.intuit.com/support/kb/1000105.html]Understand”>http://payroll.intuit.com/support/kb/1000105.html)</p>
<p>However, the fact that it is pain to do payroll is not an excuse not to do it – if you pay someone $600 or more a year, then you either have to do provide a 1099 if the person is an independent contractor) – or take out the correct payroll deductions and pay appropriate taxes. </p>
<p>Of course you can also hire a payroll service to take care of these things. I’m sure there must be some businesses that cater to the needs of small household employers. </p>
<p>An alternative is to contract with an agency to provide various services – so for example, you pay fees to the agency, and the agency pays the wages to the nanny. But that runs up the cost for that sort of service.</p>
<p>I found out something very important related to health insurance plans in Ca. Many Blue Shield and Anthem plans pre-2014 covered non-formulary drugs. 2014 plans, however, do not cover non-formulary drugs anymore. Also, the list of drugs included on the formularies have been considerably narrowed. Now, non-formulary drugs will not count toward the deductible or the out of pocket maximum. </p>
<p>This could be huge. Drugs as some people know can be very expensive (thousands of dollars) and many of these will no longer be covered. I bet very few people know about this. This is a very sneaky way to reduce the costs of 2014 plans without the policyholders having any idea of what is going on. </p>
<p>The more I learn about this law the more disgusted I am by all the stealthy and underhanded ways to diminish the quality of health care for the American people.</p>
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<p>From your keyboard to God’s modem, calmom. Launching one’s Aspie child is far from an easy task, and there’s no guarantee that they’ll be earning a decent income at age 40 no matter how hard the parent works to launch them, I’m sad to say. But we have traveled far from the original topic of the thread, so maybe this discussion belongs elsewhere.</p>
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<p>I thought that “formulary” was just the list of drugs covered by an insurance plan. So an insurance plan by definition will never cover the drugs it doesn’t cover.</p>
<p>I have an appt so I can’t post right now, but many pre-2014 plans covered non-formulary drugs, although the copay is usually greater. The important point is that the cost of the drug counted against your deductible and the out of pocket maximum.</p>
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<p>You don’t have to pay unemployment insurance taxes for family members working for your company. </p>
<p>However you still have to do quarterly payroll returns, W2 filings, etc. </p>
<p>We outsourced payroll to our tax accountant payroll company (separate from his CPA practice). To run each payroll, the cost for the first employee is quite high (more than 30 dollars) and then it is a small increment for each next employee. I have to go back and check, but I think it is $2.50. This price includes all payroll reporting we would have to do, which is the main benefit for us.</p>
<p>I understand that CF, but I also know many examples of Aspie’s who have made that transition, who have an array of very interesting careers (as well as some interesting paths to get there). I know it isn’t easy and there are no guarantees–but what do you do as parent when you aren’t rich and your Aspie offspring is too highly functional to qualify for SSI? Somewhere along the line I think you have to do your best and hope for the best, and probably take things one step at a time. (I’ve read the employment stats for Aspergers – it’s not encouraging-- I think its something like 80% unemployed).</p>
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<p>You do your best. That’s all you can do.</p>
<p>Honestly, the whole Aspie thing is front and center for us, too. Kid wasn’t diagnosed as a child, now a college educated adult and meets every single trait, but cannot handle stressors of a normal workplace. If we knew more about it a decade ago, it would have helped. Trying to figure out what’s next for him.</p>
<p>(((Samurai)))</p>
<p>Fang Jr wasn’t diagnosed as a child either. He was 19 when he got the diagnosis. It’s not easy to know how to help a person with peaks and valleys in their abilities. Aspies often seem so smart, and are smart in some ways, but lack some of the most basic abilities, abilities you just assume everyone has.</p>
<p>Again. Igloo’s link refers to a business. In that case, child care. Don’t pretend your children’s home chores are on behalf of the business. Except, whatever. On the other hand, a parent could hire an adult child as a day care worker- subject to the proper rules.</p>
<p>Back to healthcare.gov and buying insurance, here is an excellent FAQ for how to buy insurance on healthcare.gov, answering several questions that have been asked here. It has screen shots, too, so you can see where some of the buttons are hiding-- like the one to click to find the provider list for a plan you’re considering, and the one that lets you delete an application.</p>
<p>[The</a> ultimate guide to buying insurance on HealthCare.gov](<a href=“http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/10/the-ultimate-guide-to-buying-insurance-on-healthcare-gov/]The”>http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/10/the-ultimate-guide-to-buying-insurance-on-healthcare-gov/)</p>
<p>It has an awesome video of a fox hunting in the snow at the end, too.</p>
<p>The number of people I know who’ve worked in family businesses or were paid a fee as the caretaker for their aging parents is more than I can count on my hands. I just think you are wrong unless someone is attempting to use this as an illegal write off. </p>
<p>On another note: does anyone understand what is going in with this new news that the insurance plans aren’t covering significant drugs ? If this is true , they can’t be allowed to get away with it !</p>
<p>That guide’s a keeper, CF.</p>
<p>With all the bickering going on, on topics not related to choosing a plan, I wonder of any lurkers (or former posters quiet during the fray) have questions this thread can help with. And I wonder of some of the rest of us can try to focus on those rather than 101 ways to say you hate all this.
:)</p>
<p>oops, not aimed at pg. Btw, I came across a whole article about how to manage legitimately caring for parents, incl the contract and paperwork, and be paid.</p>
<p>Here is what I can’t stand about the Covered Ca. folks. They never miss an opportunity to tell you about all the great PR regarding their wonderful exchange plans but never talk about the narrow networks, the change in drug formularies and of course the large premium increases for many people. They are no better than some of the snake oil salesman who call my landline trying to shake my wallet loose from my pocket.</p>
<p>Poetgrl, I learned about this drug formulary issue from a highly placed executive at Anthem. It is happening in Ca. but don’t know what is going on in other states. I would contact your insurance company to find out.</p>