You’ve probably heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner or other household employee (who isn’t an independent contractor) may make you liable for federal income tax, Social Security and Medicare (FICA) tax and federal unemployment tax. You may also have state tax obligations. In 2022, you must withhold and pay FICA taxes if your worker earns cash wages of $2,400 or more ($2,600 in 2023). You pay household worker obligations by increasing your quarterly estimated tax payments or increasing withholding from wages, rather than paying a lump sum. Employment taxes are then reported on your tax return. Questions? Contact us. https://bit.ly/2NMIz4g
