How do I file for taxes for my privately hired health aide?

The first question you need to answer is "who is controlling the work?" If you control how the work is done, your health aide is an employee and you are responsible for employment and unemployment taxes. If she controls how the work is done, she is self-employed and it is her responsibility to pay taxes, not yours. If she is your employee, you must make sure she is eligible to work in the US. You and she must complete the US Citizenship and Immigrant Services' (USCIS) I-9 form, which can be found online. If you will be paying her more than $1,700 in 2011, you need to withhold and pay social security and Medicare taxes, along with federal unemployment tax. You are not required to withhold federal income tax, but if the employee requests it, you can do so. The total amount of taxes to withhold for social security and Medicare is 13.3% of the cash wages you pay. Your share is 7.65% (6.2% for social security and 1.45% for Medicare). Your employee's share is 5.65% (4.2% for social security and 1.45% for Medicare). You can pay the employee's share yourself and not withhold it from her wages. As of 7/1/2011, employers pay 0.6% of cash wages for FUTA (federal unemployment tax act). This tax applies to the first $7,000 of cash wages only. Above $7,000, there is no tax. You can refer to IRS Publication 926 for the specifics of these rules, as well as where to send payments. Depending on which state you live in, there may be state unemployment tax, state employment tax or you may be required to carry workers' compensation insurance. Check with your state government to learn about your responsibilities.