I have a live-in nanny who happens to be my sister. My wife and I have paid her biweekly for over a year, but only during this recent tax season did it dawn on us that there is more to do legally. I put together a W2 and listed my own social in box a - I think both EIN and SSN are allowable.
Now I have filed an LLC (with EIN) but I think it will take a month to process. When that LLC+EIN comes back, will I be able to state that my sister has been an employee of the EIN since the start of the year? If not, how should I file her prior work for tax purposes?
My sister and I share a Virginia residence and the LLC is also a VA LLC.
EDIT: To be clear, I have filed an LLC with myself and my wife as co-owners and plan to make my sister an employee. She does not have a nanny business.