Hiring a driver/escort tax question.

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MrMojoRisin
Posts: 142
Joined: Tue Dec 01, 2015 7:25 pm

Hiring a driver/escort tax question.

Post by MrMojoRisin » Wed Nov 07, 2018 7:51 pm

My mother and stepfather reside in an assisted living center, both drawing on their LTC policies.
Neither can drive, he has dementia and she is developing it as well but in overall good health and humor.

I want to hire a person on a casual basis to take them to the doctors and they may want to go out on date nights.

I am in contact with a two different people to provide this service for them. I would pay them an agreed upon wage per hour.

They would be paid by check from a bank account administered by a local bank and trust that receives their income and pays their bills.

Would we be responsible for withholding taxes or do we put that responsibility on the person we pay?

randomguy
Posts: 6503
Joined: Wed Sep 17, 2014 9:00 am

Re: Hiring a driver/escort tax question.

Post by randomguy » Wed Nov 07, 2018 8:01 pm

MrMojoRisin wrote:
Wed Nov 07, 2018 7:51 pm
My mother and stepfather reside in an assisted living center, both drawing on their LTC policies.
Neither can drive, he has dementia and she is developing it as well but in overall good health and humor.

I want to hire a person on a casual basis to take them to the doctors and they may want to go out on date nights.

I am in contact with a two different people to provide this service for them. I would pay them an agreed upon wage per hour.

They would be paid by check from a bank account administered by a local bank and trust that receives their income and pays their bills.

Would we be responsible for withholding taxes or do we put that responsibility on the person we pay?
Didn't expect to see questions about hiring an escort on bogleheads:)

Seriously a lot will depend on the exact situation as to if they get classified as an employee (i.e. you are responsible for tax withholding) or a service provider/independent contractor (i.e. you pay for a service and they take care of running their business). If they are only providing this service for you, you are probably the employer. If they drive around a dozen people, they probably are a contractor.

MrMojoRisin
Posts: 142
Joined: Tue Dec 01, 2015 7:25 pm

Re: Hiring a driver/escort tax question.

Post by MrMojoRisin » Thu Nov 08, 2018 9:10 am

Thanks. The folks I am looking at all do this as a side gig, most of them while they are in medical school at a local university. I would not be their only client.

Gill
Posts: 4738
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Hiring a driver/escort tax question.

Post by Gill » Thu Nov 08, 2018 9:12 am

No need for withholding. They are independent contractors who pay their own SS and income tax.
Gill

Traveller
Posts: 702
Joined: Sat Jun 25, 2011 10:47 am

Re: Hiring a driver/escort tax question.

Post by Traveller » Thu Nov 08, 2018 9:46 am

I agree, but I fixed your post for you. :happy
Gill wrote:
Thu Nov 08, 2018 9:12 am
No need for withholding. They are independent contractors who should pay their own SS and income tax.
Gill

Gill
Posts: 4738
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Hiring a driver/escort tax question.

Post by Gill » Thu Nov 08, 2018 10:02 am

Traveller wrote:
Thu Nov 08, 2018 9:46 am
I agree, but I fixed your post for you. :happy
Gill wrote:
Thu Nov 08, 2018 9:12 am
No need for withholding. They are independent contractors who should pay their own SS and income tax.
Gill
You’re absolutely right!
Gill

UpperNwGuy
Posts: 1133
Joined: Sun Oct 08, 2017 7:16 pm

Re: Hiring a driver/escort tax question.

Post by UpperNwGuy » Thu Nov 08, 2018 10:18 am

My 96 year old father is in assisted living. His facility provides transportation to doctors as a service (for a small fee, I think). By using the official service of the facility, there is no opportunity to be defrauded by an unscrupulous driver. His girlfriend, on the other hand, hires a driver. It is a driver used by many of her friends within the facility. In both situations, they are relying upon resources and information available within the facility. It sounds like you're trying to create something new rather than relying on the resources and information already available. Are you doing this from a distance? If so, I'd recommend you go visit your parents and talk to the people who are already dealing with a need for drivers to see what's available, what works well, what works poorly, etc.

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