Guy La Monica- Hiring Household Employees
How to File Your Taxes as a Household Employer
If you are a household employer, it is wise to consult a proper tax preparer or accountant to assist you with filing your taxes. Guy La Monica, and his team at RKL Tax Service LLC are prepared to help you determine how your household employment taxes need to be handled, ensuring you are in compliance with the federal and state government standards.
Who is a Household Employee?
In short, a household employee is anyone that you hire to do work from your home. The most common types of household employees are nannys and babysitters, elder care professionals, lawn or maintenance people, and cleaning aids. It is important to note that these persons must be …show more content…
Keep in mind that employees under the age of 18, spouses, elder parents, and your own minor children do not fall under the category of a taxable employee. If you pay your fifteen year old son to mow the lawn once a week, you are not liable to pay taxes on that wage, even if you pay him generously. However, if you paid an actual household employee more than $1,800 in one calendar year, you may be obligated to pay Social Security and Medicare taxes. The amount of taxes you will pay are determined based upon a percentage of the total earned wage, that percentage changes each year. To understand exactly how much you owe, find a tax preparer who is knowledgeable in your area. The higher the wages you pay in a tax year, the more taxes you are subject to when you file your own return. If you pay more than $4,000 to a single employee in a calendar year, you will need to also address the guidelines for federal unemployment taxes.
Requirements for Different States
Each state has different requirements in regard to state income taxes and household employees. While most states adhere to the federal guidelines, there may be additional considerations. Check with your tax preparer to determine if you are obligated to pay state unemployment insurance, workers' compensation insurance, state income taxes, or state unemployment insurance. Each of these can cause a tax return to be more difficult and costly if not handled corretly.
How to Make Your Tax
How to File Your Taxes as a Household Employer
If you are a household employer, it is wise to consult a proper tax preparer or accountant to assist you with filing your taxes. Guy La Monica, and his team at RKL Tax Service LLC are prepared to help you determine how your household employment taxes need to be handled, ensuring you are in compliance with the federal and state government standards.
Who is a Household Employee?
In short, a household employee is anyone that you hire to do work from your home. The most common types of household employees are nannys and babysitters, elder care professionals, lawn or maintenance people, and cleaning aids. It is important to note that these persons must be …show more content…
Keep in mind that employees under the age of 18, spouses, elder parents, and your own minor children do not fall under the category of a taxable employee. If you pay your fifteen year old son to mow the lawn once a week, you are not liable to pay taxes on that wage, even if you pay him generously. However, if you paid an actual household employee more than $1,800 in one calendar year, you may be obligated to pay Social Security and Medicare taxes. The amount of taxes you will pay are determined based upon a percentage of the total earned wage, that percentage changes each year. To understand exactly how much you owe, find a tax preparer who is knowledgeable in your area. The higher the wages you pay in a tax year, the more taxes you are subject to when you file your own return. If you pay more than $4,000 to a single employee in a calendar year, you will need to also address the guidelines for federal unemployment taxes.
Requirements for Different States
Each state has different requirements in regard to state income taxes and household employees. While most states adhere to the federal guidelines, there may be additional considerations. Check with your tax preparer to determine if you are obligated to pay state unemployment insurance, workers' compensation insurance, state income taxes, or state unemployment insurance. Each of these can cause a tax return to be more difficult and costly if not handled corretly.
How to Make Your Tax