New hate for IRS: completing W-2's for mom's caregivers!
 

Any business owners or accountants out there care to help a guy out?

My mom hired sitters/caregivers the last quarter of 2022 to help her at home. I told her I'd handle paying them and the taxes. I knew the W-2's were due by Jan 31st but I didn't do my research early enough to know what a pain in arse it would be!

First problem: you can enter online with the Social Security Admin but it takes two weeks to receive your log in approval BY MAIL! I applied yesterday but that will come too late for the Jan 31st due date.

Second problem: There is no 'fill in' pdf online for 2022 (there is for 2023) so I can't fill out the W-2 and W-3 forms and mail them in.

Third problem: The pdf forms for 2022 that I can download from irs.com are in some sort of pdf format the even my Adobe Acrobat Pro software cannot edit, print to pdf, or let me type over.

Forth problem: The W-2 and W-3 form data must be typed in so the IRS' system will read it. I don't have a type writer and see problem three above.

Can anyone think of a solution I can't think of?

The late penalty is $60 per W-2 (I have 5 to do) so at this point I'm thinking I'll wait for the online access and pay the penalties.

or hire a CPA?

I know nothing about this stuff .... but hey .... that's never stopped me before ;)

Is filing 1099s a better alternative than W2s?

Not sure if this addresses all your issues but the link seems to work for me.

https://fillable-form-w2.pdffiller.com/

We have a family CPA and I've called them about 10 times in the last week. They've helped a lot but not on this.

I finally got a hold of the IRS help desk just now. She was surprising helpful sort of. She couldn't quite understand how I was supposed to complete the form without a type writer either but she said I could hand write the info on the form but I have to have the IRS form and not the one I downloaded off irs.gov and printed. I ordered them yesterday too so hopefully I get the forms by next tuesday.

I also called the IRS yesterday, was told 30-60 minute wait time but I could have them call me back which I did. In about an hour they called back, left me on hold for about 20 minutes until promptly at 5pm when the message said the office I was called was closed for the day and to call back tomorrow.

My understanding is as a household employee they are an employee so W-2's, unemployment insurance, etc. vs an independent contractor with 1099 which would be like someone who mows your lawn or cleans your house (assuming you even gave them a 1099 which I'm sure 99.9999% of the population does not)

Why not just pay them in cash?

The irs new 78k agents aren't phone support either.

You lose out on some benefits. For one you if pay them cash you can’t use work benefits like flexible spending accounts. Big factor with our in home employee/nanny.

Mom want's it all on the up and up

The IRS has rules in place that government employee bureaucrats thought up with no regards to logic, common sense, or ease of use. And they have to follow rules congress put in place that no single human on the planet fully can understand. Really the tax code is so complex no human knows it all.

My company is pretty small, and we have to send out a handful of 1099s to companies we hired for services. The penalties for not doing so, or doing it wrong are what my CPA says are "draconian". To do a 1099 one must use a special IRS approved form, and it can't be generated by us on the computer. I can print my own tax return and all the bar codes and such are all part of the software. To do that with a 1099 is illegal!

For the few we need to send out it is cheaper to have my CPA file them and mail them than to buy the special forms. And we have until Feb 1st to get them mailed. Anyone that we sent more than $600 to over the year gets one. Unless it is a bank transfer, or credit card payment. Then the IRS has bank records they can see so no 1099 needed.

Pull W2 and W3 from irs.gov. They might be fillable pdf's or you may have to print and hand write in the info. W2 forms have your mom's info and recipients info. W3 is your mom's info and the totals from each box. You most likely do not have Fed or state withholdings, just FICA.

For state W2 and whatever they call the W3 (in Maryland it's MW508) you might want to check the Tx comptroller website.

Your in house care is almost certainly W2 help, not 1099. Publication 926 (avail on irs.gov) addresses the process and is not a terrible read.

Fed W3/W2 forms do not have to be done on the red forms. You can print them directly onto blank paper.

I'm getting closer. Office Depot sells a pack of official W-2's and W-3's for $40.

I see the problem with not using official IRS forms: the forms from officedepot are slightly different in size than what you print off irs.com. So if a computer is reading them, it would be off. Of course this is just another example of how screwed up the IRS is in that their system can't handle anything that's not exact. It's like a old scantron form.

Now I have to figure out how to print on to these forms. You'd think there'd be a simple Word or Excel template but I can't find one. So now I'm going to trial and error my way through creating one.

You don’t need the preprinted forms.

Yes you do. That's the gist of this whole thread.

Unless you've successfully sent in W-2's and a W-3 other than the preprinted form and I'd be curious about that.

My understanding is that they scan all of your files as soon as they come in.

Preprinted forms from a IRS tax assistance center?

Did you try the link I posted above?

https://fillable-form-w2.pdffiller.com/

been doing it for years via quickbooks printed forms on blank paper. The red form isn't necessary.

So looks like the irs.gov form isn't printable. however they do say you can file w2 forms at this ssa website-

https://www.ssa.gov/employer/

So do the W2 forms on SSA website for fed then print state form from irs.gov for Tx.

Here's some info from the Tx website
Online or by Mail for Domestic Employer’s Annual Report

Employers with only domestic employees have the option to submit their quarterly reports annually. Domestic employers who report wages and pay taxes annually can use the online Unemployment Tax Services system to submit their tax reports and payments electronically. Only employers who have an approved hardship waiver on file with TWC may download the form and mail it in. To learn more about domestic employers’ annual reporting option, see Domestic Employment.

Looks like she may also need to file Tx unemployment return as well.

I can’t help with your current situation but going forward you may want to use a household payroll service. We use a company called Homepay and they handle all the minutiae of filings, payroll, tax withholding etc. It makes tax time and year end super simple.