Legal Way To Go About This...

[daycarediva]

So my dd's health has taken a turn for the worse, and she is back on dialysis. Her plans to leave for college in the fall are on the back burner. She is enrolling at a community college locally. She turns 18 this summer.

Without having her as an employee (to avoid the liability/comp insurance requirements) is there a way to make her my partner in DC? That way we KNOW she has a flexible work schedule to make appointments/work around her college, we would split hours so DD is present when I am not (no plans to expand the dc, just both of us work 1/2 the hours)

Thoughts? Ideas?

[Blackcat31]

Originally Posted by daycarediva

So my dd's health has taken a turn for the worse, and she is back on dialysis. Her plans to leave for college in the fall are on the back burner. She is enrolling at a community college locally. She turns 18 this summer.

Without having her as an employee (to avoid the liability/comp insurance requirements) is there a way to make her my partner in DC? That way we KNOW she has a flexible work schedule to make appointments/work around her college, we would split hours so DD is present when I am not (no plans to expand the dc, just both of us work 1/2 the hours)

Thoughts? Ideas?

My state doesn't require workmans comp on immediate family members... does your state have the same loophole maybe?

Im sorry to hear about the negative turn in her health.. ((hugs))

[daycarediva]

Not that I am aware, (dh had his brother working for him and was required to have comp/unemployment ins on him) maybe it's different for my dd?

I really don't want to have to mess with payroll, etc either. Especially since my income isn't increasing (but my bills go way down when we move and I don't need the full income, but would love to work fewer hours) When dh first started he had a partnership, and according to the IRS they were both self employed and just claimed their share of the profits on their individual tax returns, and that's what I was hoping to do with dd.

[Blackcat31]

Here a BIL would have to have WC but not your children or spouse

[TomCopeland]

Originally Posted by daycarediva

So my dd's health has taken a turn for the worse, and she is back on dialysis. Her plans to leave for college in the fall are on the back burner. She is enrolling at a community college locally. She turns 18 this summer.

Without having her as an employee (to avoid the liability/comp insurance requirements) is there a way to make her my partner in DC? That way we KNOW she has a flexible work schedule to make appointments/work around her college, we would split hours so DD is present when I am not (no plans to expand the dc, just both of us work 1/2 the hours)

Thoughts? Ideas?

Making your daughter a partner doesn't decrease your liability, it increases it because you would be equally responsible for anything your partner did. Check with your state workers compensation office to see if it's required when hiring a daughter. Forming a partnership is complicated. You would lose some house deductions and you'd have to keep your business and personal records totally separate. The best way to go would be to hire her as your employee. Here's an article I've written about partnerships: http://tomcopelandblog.com/should-yo...re-partnership

[daycarediva]

I spoke to our accountant about this. He said that unemployment insurance and comp would be required if she were to be hired as an employee. Her friends mom runs a dc and would like to use dd as a sub, once she has taken all the required classes and can be legally left alone with the children, too. (she operates 24/7) The accountant said that dd can set herself up as a contractor- which is what my current sub does. (?)

My business/personal is already 100% separate, (I pay myself a set weekly amount from my business account. All business expenses go out of the DC account.)

My dc space is also completely separate from my home.

I currently have an LLC.

The unemployment/comp alone is a HUGE deterrent, almost makes it not feasible financially (not to mention payroll headaches, making sure taxes are deducted and submitted, etc)

[TomCopeland]

Originally Posted by daycarediva

I spoke to our accountant about this. He said that unemployment insurance and comp would be required if she were to be hired as an employee. Her friends mom runs a dc and would like to use dd as a sub, once she has taken all the required classes and can be legally left alone with the children, too. (she operates 24/7) The accountant said that dd can set herself up as a contractor- which is what my current sub does. (?)

My business/personal is already 100% separate, (I pay myself a set weekly amount from my business account. All business expenses go out of the DC account.)

My dc space is also completely separate from my home.

I currently have an LLC.

The unemployment/comp alone is a HUGE deterrent, almost makes it not feasible financially (not to mention payroll headaches, making sure taxes are deducted and submitted, etc)

A person could be treated as an independent contractor and not be subject to workers compensation insurance or unemployment taxes if the person: operates as a self employed person who workers for multiple providers, has a business name, registers her name with the state and uses her own contract. Otherwise, she is your employee.

[TomCopeland]

Originally Posted by daycarediva

I spoke to our accountant about this. He said that unemployment insurance and comp would be required if she were to be hired as an employee. Her friends mom runs a dc and would like to use dd as a sub, once she has taken all the required classes and can be legally left alone with the children, too. (she operates 24/7) The accountant said that dd can set herself up as a contractor- which is what my current sub does. (?)

My business/personal is already 100% separate, (I pay myself a set weekly amount from my business account. All business expenses go out of the DC account.)

My dc space is also completely separate from my home.

I currently have an LLC.

The unemployment/comp alone is a HUGE deterrent, almost makes it not feasible financially (not to mention payroll headaches, making sure taxes are deducted and submitted, etc)

Each state has its own rules about whether hiring a daughter requires you to pay unemployment taxes or get workers compensation insurance. Most states don't require this when hiring your own children. Check to be sure this is true for your state.