Our demanding careers and busy lives sometimes leads us to hire someone to help us out around the house. If you have hired a niñera, housekeeper, elder caregiver, personal assistant, or any other person to provide services in your home you might become a household employer. What does it mean?
El Internal Revenue Service requires payroll tax filings by a household employer who pays a household employee more than $1800 cash wages in calendar year 2013 (in 2014 this threshold increased to $1900). The requirement for state employment tax filings is different, and is determined by wages paid in a calendar quarter.
These household payroll taxes are collectively referred to as “impuestos sobre las niñeras“, although as a practical matter these employment taxes are applied to all US employees.
Nanny Tax Video Tutorial (100 SECONDS)
The employer’s nanny payroll tax obligations may include:
- Impuestos de Seguridad Social y Medicare
- Federal Unemployment Tax
- State unemployment and disability insurance taxes levied on the employer
Your household employee contributes to or pays:
- Impuestos de Seguridad Social y Medicare
- Employee Disability/Unemployment Taxes where required
- Federal/State Income Taxes
The EMPLOYER is solely responsible for the remittance of the Social Security and Medicare taxes.
{{cta(‘004862e4-cca2-435b-a742-c9e8d28c396d’)}}
Questions? Please give us a call at 800.626.4829. We will be delighted to assist you!