What are the tax limits when I book care with my provider?

Limits on how many hours you can book with uploaded providers are applied in the Helpr app to help prevent families from becoming household employers under federal tax code.

These limits are based on several factors, including: your provider’s hourly rate, your relationship to your provider*, the tax period (quarter and year), and the location of care.

In the US:

There is a maximum dollar amount per tax quarter and per tax year you can pay a single provider. Currently, these limits are:

$1,000 per tax quarter
$3,000 per tax year

For the most up to date information, see the IRS Household Employee Tax Guide (Publication 926).

How to estimate your available hours:

You can estimate how many hours you can book with a provider by dividing the applicable dollar limit by their hourly rate.
For example, with a $1,000 quarterly limit, a provider who earns $25/hour can work up to 40 hours per quarter with you, as long as you have available benefit hours.

What happens when you reach a limit:

You won't be able to book with the provider for the remainder of that tax period.
The provider becomes available again at the start of the next tax period, if you have benefit hours available.
If you have a care need, you can continue using Helpr by uploading and booking with other providers.