Pay your household employees on the books? Yes, it’s the right thing to do for you — and for them.
As tax season gets underway, it’s a good time to learn the laws regarding your nanny, housekeeper or gardener.
“We estimate somewhere between 70% to 80% of families don’t pay legally,” Tom Breedlove, director of business development at Breedlove & Associates, a household employer payroll, tax and compliance service told the Daily News. “They absolutely should. Not only is it the law, but it helps the employee tremendously.”
Under IRS rules, if a household worker earns $1,800 or more in a calendar year, the employer is required to withhold Social Security and Medicare (collectively, FICA, which stands for the Federal Insurance Contributions Act) taxes from their pay.
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via Paying household staff on the books is good for them and can save you tax woes – NY Daily News.