On January 7, 2014 the Internal Revenue Service issued Notice 2014-7. This may result in no Federal Income tax for certain caregivers caring for individuals in their home. Please notify your caregiver/s that this law change may apply to them. Caregivers should contact their tax professional for guidance on this notice.
If your caregiver/s determine that this law change does apply, they should complete a new W-4. The new W-4 will be effective when received by the Consumer Direct payroll department. The W-4 can be located under the forms tab on this website.
This new law applies to Federal Income tax only. If your caregiver/s reside in a state with state income tax they should contact their tax professional for guidance on any applicable state law. If appropriate, a separate W-4 should be submitted for state income tax only.