I see no reason for your sister to have an SS-8 or for you to have an EIN in the situation you describe. (Are you planning to dictate the days and hours your sister works as a caregiver?) The SS-8 is used when there needs to be a determination of whether the person in question is an employee or an independent contractor.
For your sister:
https://ttlc.intuit.com/questions/2584365-am-i-an-employee-or-an-independent-contractor
The situation sounds like you just want to compensate your sister for caregiving and she can enter self-employment income on her own tax return--thereby earning some credits toward someday getting Social Security. If she and your mom are not living in your household then your sister is not your household employee.
If your sister is an independent contractor, then she enters the income you pay her on her own tax return and pays self-employment tax to Social Security and Medicare, and perhaps ordinary income tax--depending on how much she is paid.
One thing you have not mentioned----are you claiming your mother as a dependent on your own tax return? If your mom has less than $4300 of income for 2020 (not counting Social Security) and you are paying for over half her support, then you might claim her as a dependent and get the $500 credit for other dependents on your tax return. And if you are claiming Mom, then is the caregiving for medical reasons? You *might* be able to claim the caregiving expense as a medical expense on your tax return. But we need more information.
Thoughts? @DoninGA? @Opus 17?
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
