- Effective July 1st, 2018, our employee tax payment process with HomeWork Solutions and invoice policy will be changing for existing families enrolled in HWS services.
Why is the process with HWS changing?
- Here at CareLinx, our families are at the core of everything we do. That’s why we work tirelessly to improve our processes in order to provide seamless customer experiences for you! CareLinx is making your tax management even easier than before.
- Effective July 1st, you will now be able to pay your caregiver wages and taxes all in one invoice. Once your invoice is paid, CareLinx will take care of all payroll tax payments directly with HWS. You will no longer have to remit the payroll taxes to HWS separately.
Why is the process changing July 1st?
- HWS files federal and state employment payroll taxes to the Internal Revenue Service (IRS) and state agencies on a quarterly basis. Second quarter filings are due in July.
- The new employee tax payment process will launch July 1st in order to align with the beginning of the third quarter.
How will the new process work?
Here’s how the new process will work:
- Next time you receive an invoice, you will notice a new “Estimated Payroll Taxes” line showing the estimated amount due
- Pay your CareLinx invoice as usual
- CareLinx takes care of payroll tax payment via HWS for you
- If you are already paying taxes quarterly via HWS, please continue to do so through Q2 filing, which takes place in July
What do I need to do?
- The transition is simple! Just pay your invoice as usual...that’s it!
What happens if a customer receives an invoice on June 29th, however, the invoice is not paid until July 2nd?
- Because the invoice and the calculation of the taxes we sent before July 1st, assume that the tax will be paid to HWS separately. Pay the invoice as indicated. CareLinx and HWS will handle any discrepancies with you directly.
Why are the taxes estimated?
- Taxes are calculated based on federal and state tax rates. These rates may change from time to time, however, at the end of each quarter both CareLinx and HWS will reconcile to calculate the accurate tax and will send a report showing any credits or debits. CareLinx will charge or refund the difference at the end of the quarter via your credit card on file.
If a caregiver makes less than the taxable threshold, will the tax withholding still apply if a family is enrolled in HWS services?
- Yes, the employee will still see payroll taxes withheld from their invoices. In the event that the caregiver made less than the taxable threshold by the end of the year, they will receive a tax document from HWS that will allow them to deduct the excess payroll taxes from their income tax.
Can families choose to opt out of the new process with HWS?
- CareLinx is transitioning all clients to this more convenient and simpler process. If you have specific concerns or questions, please reach out to your Care Advisor.
What if I have more questions?
- Continue to work with your CareLinx advisor or contact HWS directly.
Where can I see a breakdown of the estimated payroll taxes on my invoice?
- You can find a breakdown of the total estimated payroll taxes located under the “Payroll Taxes - Estimated” line in your invoice. This will include a detailed description of social security + medicare, federal unemployment tax, state unemployment tax, state disability insurance and state supplemental taxes.