Do I have to pay any employment or payroll taxes for my Helper?

If you have hired a Helper for Ongoing Help, you may have to pay employment or payroll taxes when they meet certain IRS or state thresholds. You can access your invoices online. View a quick tutorial on how to view your weekly invoices for in-home care.

We will cover some basics in this article to help you understand your obligations, but we recommend speaking with your tax preparer for the most up-to-date information for your circumstances.

There are several types of taxes related to payroll: (1) Employer payroll taxes, which are paid by the employer (and not deducted from the employee); (2) Employee payroll taxes, which are mandated by federal, state and/or local governments, deducted from employee pay, and then transferred to the applicable taxing authority; and (3) Income tax deductions, which are taken from employee pay based on estimates of income and transferred to the applicable taxing authority.

In addition, state payroll taxes may also be required, depending on the state in which the services are performed. Some cities and counties in the US also impose their own payroll taxes. The percentages are typically changed mid-year or at the beginning of the calendar year. Employers should stay up-to-date on the employer payroll taxes that they owe, as well as taxes that are to be deducted from the employee’s pay and forwarded to the applicable taxing authority. We recommend that you seek legal advice regarding your tax obligations. While we cannot guarantee its accuracy, you can view state by state employment tax information.

If you pay your hired Helper more than $2,700 (based on IRS 2024 data) in one calendar year, you are required to withhold and pay Medicare and Social Security taxes on a Helper's wages. Medicare and Social Security taxes, combined, are equal to 12.4% of the Helper's wages (based on 2023 IRS data). Generally, you and the Helper will each pay one-half of the current IRS rate.

In addition to Medicare and Social Security taxes, if you pay a Helper more than $1,000 of wages in any quarter during the tax year, then the employer must also pay federal unemployment taxes (FUTA) on the Helper's wages. Currently, FUTA is 6% for the first $7,000 paid by one employer to the Helper. This amount is paid solely by you and not by the Helper. Publication 15 (2023), (Circular E), Employer's Tax Guide | Internal Revenue Service (irs.gov) In addition, you will be responsible for paying state unemployment taxes, if applicable. 

Herewith offers you the option to use our partner, HomeWork Solutions, to manage your employment tax responsibilities. Learn more about federal taxes from the IRS requirements for employers, and visit your state tax board’s website to learn more about state requirements.

Can I get help with my employment taxes for hired Helpers?

You may opt in to payroll and employment tax management services provided by our partner, HomeWork Solutions. To enroll, opt in when you hire a Helper for ongoing help.

HomeWork Solutions Setup Fee + Quarterly Fees

If you are hiring your Helper(s) full or part-time, you may wish to opt in to payroll and employment tax support from our partners, HomeWork Solutions.

If you choose to opt in, a one-time setup fee will apply at the time of enrollment, plus a quarterly fee thereafter. Learn more about HomeWork Solutions services and fees.

What does HomeWork Solutions do?

HomeWork Solutions partners with us to provide payroll and employment tax management services. When you hire your first Helper on the Herewith platform, you’ll have the option to choose whether you’d like to opt in to HomeWork Solutions’ employment tax support (the cost is outlined above). If you’d like to use these services, just follow the prompts within the app.

Have a question about these services? Contact HWS at 1-800-626-4829 or visit the HomeWork Solutions FAQ page.

What if I decline to use HomeWork Solutions?

If you’d like to manage your employment tax obligations on your own, you may decline to use HomeWork Solutions’ services. In that case, you’ll use Stripe for easy, automatic payments to your employee. Learn more about how to pay for ongoing care on Herewith.

Please note: If you opt out of using HomeWork Solutions to manage your payroll and tax obligations, you will be responsible for managing payroll and applicable employment and payroll taxes for your Helper(s).

Can I switch to HomeWork Solutions later if I started out with Stripe?

Yes, if you originally chose to pay your Helper directly with Stripe, you can make the switch to HomeWork Solutions later on.

To enroll in HWS after hiring has already taken place, please contact our customer support team at 415-506-9776.