If my 8 aunts and uncles want to pay one of my cousins monthly to provide companionship/basic care for my grandma, what would be the tax implications for all parties?

[prplmorninglory-]

Would my cousin be considered an independent contractor or an employee? She would not have a fixed schedule, just visit her every day, check her blood pressure, make sure she takes her meds, etc. If each aunt/uncle would pay my cousin $50/month x 12 months=$600/year from each so that means she wouldn't have to get a 1099 from any of them if she was an independent contractor?

Also, read this from IRS: https://www.irs.gov/businesses/small-businesses-self-employed/family-caregivers-and-self-employment-... and sounds like since my cousin is not in the business of providing care to other elderly people, only specifically to our grandma, she wouldn't have to pay self-employment tax. Is that correct?

We're not sure if she'd be an employee (and who would be the employer?) or if she's an independent contractor.

So what would be the tax implications for my cousin (she would have $4,800/year income for this) and would there be any tax implications for my aunts and uncles who are paying her? Would my cousin just report this as Other Income? Thanks in advance for your help!

[Critter-3]

Personally ... I would lean towards this all being a non taxable non reportable gift from one family member to another and no one would report anything.  

[prplmorninglory-]

Thank you. We considered this, but my cousin insists on reporting this as income to avoid any problems if it needs to be reported. In this case, would it just be reported as Other Income to pay just federal taxes? Or would she have to pay self employment taxes?

[macuser_22]

For one thing a 1099-MISC has nothing to do with it because only businesses issue 1099-MISC in the course of doing business. 

Secondly, it does  not seem to be an employee-employer relationship since the grandmother is receiving the service from another relative that is getting paid (by what I would consider to be non-taxable or reportable gifts) from other relatives. 

I would suggest that the relative that has concerns about this consult a tax professional for advice since they probably will not listen to anyone else.

As far as I can see there is nothing here for anyone to report on a tax return.