The Social Security Administration has publicized that cash payments made for domestic household services is subject to FICA if over $2,000 annually, or $1,000 in a quarter. This is often known as "nanny tax." This threshold is per employee, not the total for all employees.
If you have engaged the services of someone in a domestic setting, be sure you know the rules that apply. This could include, but is not limited to a nanny or babysitter for your children, housekeepers, home health workers and even yard workers.
If you have an employee in your home that is subject to nanny tax, all applicable taxes must be withheld, and you will need to pay all the applicable employer taxes as well.
We can help you navigate the complex payroll tax requirements. Call us to schedule a consultation to work through how to keep you compliant with all state and federal withholding requirements.
If you have engaged the services of someone in a domestic setting, be sure you know the rules that apply. This could include, but is not limited to a nanny or babysitter for your children, housekeepers, home health workers and even yard workers.
If you have an employee in your home that is subject to nanny tax, all applicable taxes must be withheld, and you will need to pay all the applicable employer taxes as well.
We can help you navigate the complex payroll tax requirements. Call us to schedule a consultation to work through how to keep you compliant with all state and federal withholding requirements.
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