Living In USA

Household employees include workers such as cooks, cleaning people, baby-sitters, handymen, drivers, and gardeners. Under certain circumstances you are required to pay Social Security taxes for those employees on a percentage of the total wages paid. This amount may be matched by the employee, or you may pay the whole amount. You, the employer, are responsible for mailing the total amount of tax to your local Internal Revenue Service (IRS) office within thirty days after the end of each calendar quarter. Once you have paid your first tax, the IRS will send you a quarterly reminder. There is a penalty if you do not pay the tax on time. The amounts involved are not great, even when you pay the full tax yourself.

You should consult a tax preparer, such as a certified public accountant (CPA), to find out what your obligation is regarding these taxes. Also, you can telephone the nearest office of the IRS and ask for the proper instructions and forms for filing this tax. If your friends or neighbors employ household workers, you can ask them how they handle this matter.